Investment Banking

Regulators say Wells Fargo isn’t doing enough to police customer crimes

Bank also faces lawsuit claiming that it failed to detect alleged Ponzi scheme

Regulators say Wells Fargo isn’t doing enough to police customer crimes
Photo: Smith Collection/Getty Images

Wells Fargo is struggling with its regulatory obligation to monitor financial crime, the latest challenge in the bank’s years long effort to recover from a series of scandals.

Regulators have issued the bank formal orders to be better at catching criminals who may be using its accounts or products, according to people with knowledge of the matter. At the same time, the bank is facing a lawsuit claiming it allowed an alleged $490m Ponzi scheme to operate.

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