By Manya Saini and Nupur Anand

(Reuters) -Wells Fargo's latest regulatory rebuke for insufficient efforts to combat money laundering will probably prolong another ongoing major regulatory punishment that has limited growth at the bank, analysts said.

Despite some progress fixing issues from a 2016 fake accounts scandal, the fresh compliance problems signal Wells Fargo's cleanup efforts may be far from over, and as such the period the bank must stay under an asset cap imposed by the U.S. Federal Reserve is now likely to be extended.

The Office of the Comptroller of the Currency said on Thursday it was putting restrictions on Wells Fargo's ability to expand into risky businesses after it found the bank had insufficient safeguards against money laundering and other illegal transactions.

"This is very surprising given that Wells Fargo had resolved a consent order for anti-money laundering quite recently, in January 2021, after many years of work and expense," Vivek Juneja, an analyst at JPMorgan Securities, wrote in a note.

The order says Wells Fargo will need approval from the OCC to introduce riskier new products or services, as well as providing risk assessment plans even for less risky offerings and a detailed action plan. It did not fine the bank.

"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," the bank said in a statement on Thursday.

Wells Fargo operates under a $1.95 trillion asset cap that prevents it from growing until regulators deem it has fixed problems dating back to the fake accounts scandal. It still has eight regulatory punishments, called consent orders, that it is working to address.

Fed Chair Jerome Powell said in 2021 that the asset cap would stay in place until the firm had comprehensively fixed its problems. The Fed has not spoken publicly on Wells Fargo's asset cap since then.

"Although an enforcement action against a bank for anti-monetary laundering policies and procedures is unfortunately not that uncommon, it is unique for Wells," KBW analysts led by David Konrad wrote in a note. "It adds uncertainties to the timeline of the asset cap and their expense outlook."

In a regulatory filing last month, the bank had said it was being investigated by government authorities over issues related to anti-money laundering and sanctions programs, which Juneja from JPMorgan said could mean other agencies also taking action.