The Federal Reserve issued a cease and desist order against Beijing-based Industrial & Commercial Bank of China Ltd. and unit Industrial & Commercial Bk NY in connection with their anti-money laundering and Bank Secrecy Act compliance.
Under the enforcement action, the company and the branch have agreed to submit a written plan to enhance oversight and compliance with their BSA/AML requirements as well as regulations issued by the U.S. Treasury Department's Office of the Foreign Assets Control.
They were also ordered to submit a revised written customer due diligence program for the company's New York branch, as well as a written report of all known and suspected violations of law and suspicious transactions.
The company and the New York branch were also required to have an independent third-party review of the branch's U.S. dollar clearing transaction activity from July 1, 2016, through Dec. 31, 2016.
