The behaviour, reportedly done without consent, raises fresh questions about the firm's practices
Some employees in a Wells Fargo business banking unit improperly altered information on documents linked to corporate customers, according to people familiar with the matter.
The workers at the firm’s so-called wholesale unit, a different arm from its retail bank, added or changed information on documents without customers’ knowledge, reported the Wall Street Journal. The activity reportedly affected information ranging from social security numbers, to addresses, to dates of birth for people associated with business-banking clients.
The bank has faced sanctions from US federal regulators for similar violations in recent months, which has impacted its ability to grow its balance sheet. “The behaviour again raises questions about Wells Fargo’s risk-management practices and controls,” the Journal said.
According to sources, the behaviour took place in 2017 and early 2018 as the firm was working toward a deadline to comply with a regulatory consent order that related to the bank’s anti-money-laundering controls. The employees were also under pressure trying to finish documentary requirements related to another regulator’s new rules for disclosures surrounding proof of beneficial ownership of businesses.
Sources said Wells Fargo became aware of the activity from employees. An internal investigation revealed that the behaviour wasn’t isolated; one source said the bank is still investigating.
Wells Fargo has reportedly informed the Office of the Comptroller of the Currency, one of its main federal regulators, of the problem. The office is purportedly looking into the issue.
“This matter involves documents used for internal purposes,” said a Wells Fargo spokesman in a statement. “No customers were negatively impacted, no data left the company, and no products or services were sold as a result.”
The representative went on to note that the bank has “built more robust internal processes” that supports its values, and swift action is taken to correct any behaviours that violate those values.
