By AnnaMaria Andriotis
Capital One Financial Corp. is under investigation for its anti-money-laundering program, according to the company's annual securities filing.
The bank disclosed Thursday that it is under investigation by the New York District Attorney's Office, the Justice Department and the Financial Crimes Enforcement Network of the Treasury Department over "certain former check casher clients" of its commercial banking business and over its anti-money-laundering program.
The bank's November filing with the Securities and Exchange Commission said it had received subpoenas and requests for testimony, but not that it was being investigated.
A Capital One spokeswoman said the bank used different words in the filing to describe the same situation.
As previously disclosed, Capital One has also been the subject of an open consent order with the Office of the Comptroller of the Currency since July 2015 over regulatory deficiencies in its anti-money-laundering program.
The OCC action has posed a hurdle for Capital One's planned acquisition of the Cabela's Inc. credit-card portfolio , raising the possibility another bank will snatch that deal away. That deal was announced last year when Bass Pro Shops agreed to purchase Cabela's. Capital One agreed to buy the credit-card business as part of the deal.
On Capital One's earnings call last month, Chief Executive Richard Fairbank said the bank didn't expect to receive regulatory approval for the purchase before Oct. 3. That is when Cabela's and Bass Pros Shops can walk away from the transaction. He added that the bank wouldn't be able to refile its application for the deal until after "we have completed our work under the AML consent order."
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