The Federal Reserve issued a cease and desist order toAgricultural Bank of ChinaLtd. and its New York branch related to weaknesses in the bank'sBank Secrecy Act and Anti-Money Laundering compliance program.
Under the terms of the consent order, Agricultural Bank ofChina must submit a written action plan describing the actions to be taken toimprove the branch's BSA/AML compliance program. Additionally, the bank isrequired to submit a written plan covering its customer due diligence programfor the New York branch.
The bank must also ensure that all suspected law violationsor suspicious transactions must be timely and accurately reported to lawenforcement and supervisory authorities.
The Fed also requires the bank to conduct an independentthird-party review of the branch's dollar clearing transaction activity fromOct.1, 2014, to March 31, 2015. The review will be focused on any suspiciousactivity involving high risk customers or transactions.
The bank is also required to submit a written revisedinternal audit program for the branch.