American Express Names Jodi Richard Risk Chief After AML Orders

American Express is bringing in an experienced bank regulator and risk executive at a consequential moment. Jodi Richard will become chief risk officer of American Express and American Express National Bank on January 25, 2027. She will also lead the Global Risk and Compliance team, report to Chief Executive Stephen Squeri and join the executive committee.

Richard has served as U.S. Bancorp's chief risk officer since 2018 and joined the bank in 2014. Her remit covered financial and nonfinancial risk, including credit, compliance, fraud, cybersecurity, technology risk and privacy. Earlier roles at HSBC and the Office of the Comptroller of the Currency add both operating and supervisory experience.

U.S. Bancorp said Richard resigned on October 23 and that the departure was not caused by a disagreement over the company's operations, policies or practices. Chief Credit Officer Troy Remington will serve as interim chief risk officer while U.S. Bancorp searches for a permanent successor. The change therefore creates a transition at both institutions, although the more important investor question sits with American Express.

The timing follows serious regulatory findings. On October 8, the OCC imposed a $350 million penalty and a cease-and-desist order on American Express National Bank for weaknesses in its Bank Secrecy Act and anti-money-laundering program. The regulator cited inadequate resources, gaps in internal controls, weak independent testing and training, and a failure to tailor risk assessments to American Express's card-heavy business. The OCC said those failures delayed the identification, evaluation and reporting of about $13 billion of suspected trade-based money-laundering activity over the previous decade.

The Federal Reserve issued a parallel enforcement action against the parent company and a travel-services subsidiary. American Express later said in its quarterly filing that it was improving programs, policies and procedures and working to satisfy the orders. It also warned that failure to meet the requirements could lead to additional penalties or material restrictions.

Richard's appointment is relevant because her background matches the weaknesses regulators identified. It is not evidence that remediation is complete, and the company has not tied a timetable or measurable control milestones to the leadership change. Investors should separate a credible personnel decision from proof that monitoring, testing and reporting systems now work as required.

American Express entered this process with strong operating momentum. Third-quarter revenue net of interest expense rose 9% to a record $20.1 billion, and adjusted earnings per share increased 13% to $4.68. The risk appointment is unlikely to change those near-term economics. Its value will be measured by whether the company closes the enforcement orders without new restrictions while preserving growth in its card franchise.