FinCEN assessed a $390,000,000 penalty against Capital One for willful and negligent violations of the Bank Secrecy Act. Capital One disregarded its’ obligations to report information that would aid law enforcement in protecting national security. Their failures allowed known criminals to have unchecked access to the nation’s financial system, fostered criminal activity and allowed it to continue and thrive at the expense of consumers.
This activity took place at least from 2008 through 2014 and allowed suspicious transactions in millions of dollars to occur unreported. These funds were connected to organized crime, tax evasion, fraud, and other financial crimes all laundered through Capital One.
In early 2014 Capital One cut off payday lenders and check cashers, but prior to that time was serving over half of the licensed check cashing companies in New York. In 2015 they began discontinuing pawnbrokers, including cancelling Spark for Business credit cards that many had used for years.