A Report by CYS Global Remit Legal & Compliance Office
The Industrial & Commercial Bank of China (ICBC) will pay approximately $32 million to resolve investigations into alleged compliance issues at the bank’s New York branch, according to regulators on Friday. ICBC, the world’s largest bank by assets, has reached settlements with both the Federal Reserve and the New York State Department of Financial Services (NYDFS).
Under the settlements, ICBC will pay $30 million as part of an NYDFS investigation that uncovered deficiencies in the anti-money laundering and Bank Secrecy Act compliance programs at the bank’s New York branch from 2018 to 2022. Additionally, the Federal Reserve imposed a fine of $2.4 million for alleged unauthorized use and disclosure of confidential supervisory information.
The NYDFS further stated that compliance documents had been backdated and that ICBC had failed to promptly report the issue. ICBC emphasized that the settlement recognized the bank’s remediation efforts and does not reflect the current state of compliance programs and internal controls at its New York branch, emphasizing that compliance and risk management remain top priorities.
CYS Global Remit operates within the regulatory framework overseen by MAS, like many other non-banking financial institutions. Compliance with reporting obligations, including the submission of Suspicious Transaction Reports (STR), is mandatory as part of the collective effort to combat money laundering and other financial crimes. All these management practices are essential pillars of operation, ensuring transparency, accountability, and trust within the industry and among stakeholders.
Source: wsj.com/