Wells Fargo's shares declined on Thursday after the bank reached a formal agreement with the Office of the Comptroller of the Currency (OCC) to address deficiencies in its financial crime risk management and anti-money laundering (AML) controls.

The bank, which has faced multiple regulatory challenges over the past decade, saw its stock close down by 4%. However, Wells Fargo avoided a fine from the OCC in this instance.

The OCC cited issues with the bank’s processes for handling suspicious activity and currency transaction reporting, as well as shortcomings in customer due diligence, customer identification, and beneficial ownership programs. Under the agreement, Wells Fargo must undertake comprehensive corrective actions to strengthen its AML and sanctions compliance programs.

In response, Wells Fargo issued a statement saying: "We have been working to address a substantial portion of what’s required in the formal agreement, and we are committed to completing the work with the same sense of urgency as our other regulatory commitments."