US orders compliance overhaul at Industrial and Commercial Bank of China

The US central bank on Tuesday ordered the Industrial and Commercial Bank of China, the world’s largest by assets, to overhaul anti-money laundering and sanctions compliance at its New York branch.

The consent order came after an exam by the Federal Reserve Bank of New York found “significant deficiencies” at the branch in detecting and preventing illicit financial flows.

Under a consent order signed Monday, the bank now has two months to deliver a plan for a top-to-bottom revamp of its internal policies for managing and identifying risk, reporting suspicious activity and revising its internal audit program.

ICBC must also retain an independent outside consultant to review US dollar clearances between July and December of 2016 to determine whether “high risk customers” passed money through the bank without detection.

The review may be extended to other time periods, depending on its initial results, according to the consent order.

Source: AFP

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