May 28--Riverwoods-based financial services company Discover must address "deficiencies" in its ability to fight money laundering, according to a newly disclosed agreement with the Federal Reserve Bank of Chicago.
Discover must submit a written plan to the Fed on how it will improve efforts to combat money-laundering. The plan, according to the nine-page agreement with the Fed, must address how it will finance staff and technology to comply with regulations, as well as how it will measure its progress in spotting suspicious activities, among other things.
Last year, Discover said it expected to spend $75 million or more in 2015 to comply with regulations to fight money laundering.
The Federal Deposit Insurance Corp. had ordered Discover to improve its program and to adhere to the Bank Secrecy Act.
And the Fed also had signaled that it planned to take action against Discover to improve its compliance.
The Bank Secrecy Act requires U.S. financial institutions help federal agencies to detect and prevent money laundering.
byerak@tribpub.com
