On September 23, 2025, in Park v. Shinhan Bank America, the U.S. District Court for the Southern District of New York dismissed whistleblower retaliation claims brought...
On September 23, 2025, in Park v. Shinhan Bank America, the U.S. District Court for the Southern District of New York dismissed whistleblower retaliation claims brought by four former compliance officers of Shinhan Bank America ("SHBA") pursuant to Rule 12(b)(6). No. 22-CV-10331 (VSB). The claims arose under the Anti-Money Laundering Act of 2020 ("AMLA") and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"). After moving to dismiss, but prior to the court's ruling, the defendants moved to compel arbitration.
Background
As part of a 2017 Consent Order with the Federal Deposit Insurance Corporation ("FDIC"), SHBA agreed to overhaul its Bank Secrecy Act and Anti-Money Laundering compliance program. Plaintiffs, who were senior compliance officers tasked with remediating the program, alleged that management prematurely launched a new transaction monitoring system. They claimed this rollout created significant compliance gaps and that, after reporting these issues (and others) internally and to the FDIC, they were discharged in retaliation.
Court Rulings
The court first considered whether defendants waived the right to arbitrate by first moving to dismiss. The court held that defendants waived the right to arbitrate by filing their Rule 12(b)(6) motion to dismiss before moving...
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