Agricultural Bank of China (ABC) has been ordered by the US Federal Reserve to address ‘significant deficiencies’ in its anti-money laundering systems.
Two years ago, a former bank employee notified the New York authorities that there were money-laundering risks in the bank’s trade finance operations.
Regulator’s order
The US Federal Reserve has ordered ABC to overhaul its protections against money laundering.
The regulator also said in a statement that the bank, one of China’s largest financial institutions, should submit a written plan within 60 days explaining how it will fix the shortcomings in managing risk in its New York branch and gain tighter control over suspicious activity.
No fine has been imposed on the bank.
Trade finance risks
Earlier this year, ABC was sued by a former chief compliance officer who said she was forced out of her job after informing the regulator of money-laundering risks in trade-financing transactions written by the bank’s New York branch.
Former head of compliance for the branch, Natasha Taft, alleged the bank retaliated against her for the disclosures in late 2014.
Categories: Trade Based Financial crimes News
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