The enforcement action against Wells Fargo is based on significant deficiencies in its Anti-Money Laundering (AML) processes. The OCC pointed out issues like inadequate customer research, failure to report suspicious activities, and difficulties in identifying the true owners of accounts. As a result, Wells Fargo must now obtain OCC approval before engaging in high-risk business activities. Despite progress in addressing some issues, the bank continues to face scrutiny over its ongoing compliance struggles.