Shinhan Bank America, the U.S. subsidiary of South Korea’s Shinhan Bank, has officially exited the Federal Deposit Insurance Corporation’s (FDIC) comprehensive anti-money laundering (AML) monitoring order after eight years. The move clears the way for the bank to shift its focus toward growth, bolstered by a $50 million capital injection from its Korean headquarters completed last week.
The FDIC announced on April 25 that it had lifted the consent order placed on Shinhan Bank America as of March 13. The original order, first issued in 2017, required the bank to strengthen its AML program and restricted key management activities, including capital expansion and new business ventures, unless pre-approved by regulators.
During the consent order period, Shinhan Bank America had to submit regular reports and undergo frequent examinations. In 2023, the bank faced further regulatory challenges when the Financial Crimes Enforcement Network (FinCEN), FDIC, and New York State Department of Financial Services (NYSDFS) jointly imposed a $25 million fine over deficiencies in its AML program.
Speaking with Korea Daily, Chief Strategy Officer Sungwook Kim said, “During the regulatory period, we faced more stringent audits, but now that the order has been lifted, we plan to allocate more resources toward business growth.” He added, “We aim for aggressive expansion this year, and we have already completed a $50 million capital injection from our head office.”
The bank plans to leverage the new capital to expand operations, particularly strengthening its role in supporting Korean businesses entering the U.S. market.
Shinhan Bank America, headquartered in New York, currently operates 14 branches across five states with significant Korean American populations, including California, New Jersey, Georgia, and Texas.
[By WONHEE CHO]
