Federal regulators fined American Express Co. $350 million for failing to catch and report money laundering in its system, one of the steepest penalties imposed by financial authorities in President Donald Trump’s second term.

The US Office of the Comptroller of the Currency (OCC) cited the bank for deficiencies in its compliance programs, according to a statement Thursday. The Federal Reserve announced a separate enforcement action against the New York-based company linked to its anti-money laundering program, in particular at the firm’s national bank subsidiary.

“The bank experienced systemic breakdowns in its suspicious activity monitoring and reporting processes, resulting in a failure to timely identify, evaluate, and sufficiently report approximately $13 billion of suspected trade-based money laundering activity that took place over the past decade,” the OCC said in its statement.

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Amex said in a regulatory filing that the penalty won’t impact the full-year 2026 guidance it previously issued and the orders don’t impose an asset cap on the firm. Costs tied to fixing the issues aren’t expected to impact 2027 guidance either, the firm said.

The fine contrasts with the deregulatory drive that’s taken place under Trump’s second term. Watchdogs have largely worked to reduce the regulations that large US banks face, including by relaxing how much capital banks must hold as a buffer against potential losses, narrowing the scope of bank supervision and shrinking a Federal Reserve unit dedicated to bank oversight.

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Amex Chief Executive Officer Steve Squeri said the firm identified areas for improvement in its compliance programs through internal and external reviews.

“We also investigated transactions that we identified being processed over our network by individuals misusing our products for the purchases of goods and services, reported that information to law enforcement, and took other appropriate action,” Squeri said in a separate statement. “While we have made meaningful progress, we know there is more work to do.”

Amex is best known for its premium credit cards, including the Platinum card with its $895 annual fee. The firm also has a national bank, which offers checking and savings accounts to customers.

Amex shares dropped nearly 2 percent to $302.10 at 5:22 p.m. Thursday in after-market trading.