LINE

    Text:AAAPrint
    Economy

    U.S. tells Chinese bank to combat money laundering

    1
    2015-07-23 08:37China Daily Editor: Si Huan
    An outlet of China Construction Bank in Xuchang, Henan province. (Geng Guoqing/For China Daily)

    An outlet of China Construction Bank in Xuchang, Henan province. (Geng Guoqing/For China Daily)

    China Construction Bank has been ordered to tighten money-laundering controls at its New York branch to resolve an enforcement action brought by the US Federal Reserve and the New York Department of Financial Services.

    The world's second-largest bank by assets is working to address "deficiencies relating to the branch's risk management and compliance" with the Bank Secrecy Act, the regulators said on Tuesday. The order calls for better oversight of account holders and the creation of a new internal audit program.

    The bank should submit plans for compliance and customer due diligence programs to help curb money laundering and suspicious transactions within 60 days, the Fed said.

    Mildred Harper, chief compliance officer at CCB's New York branch, confirmed the enforcement action but declined to comment.

    It is the first time that the Fed, the United States' central bank, has taken an enforcement action against CCB, according to a Fed database. The records show that no similar actions have been taken against any of the three other large Chinese banks-Bank of China, Industrial and Commercial Bank of China and Agricultural Bank of China.

    The Fed did not impose a fine or other immediate sanctions on the bank, and it did not detail what specific problems CCB was facing.

    But a source familiar with the matter said the Fed action was driven by issues in the correspondent banking business, in which banks transact in dollars on behalf of foreign banks that have no presence in the United States.

    There have been problems with how CCB monitored transactions, said the source, who asked not to be named.

    The issue of banks failing to properly vet foreign correspondents is a major concern for regulators in the U.S.. Some banks are acting as a gateway to the U.S. financial system without doing enough to keep criminals out, regulators say.

    Some high-profile banks have been hit with huge fines in recent years for failing to adhere to U.S. guidelines and a range of compliance issues.

    Last year, BNP Paribas pleaded guilty to two criminal charges and agreed to pay almost $9 billion to resolve accusations that it violated U.S. sanctions against countries such as Sudan, Cuba and Iran.

    In 2012, HSBC Holdings paid a $1.9 billion fine to the U.S. authorities, a record at the time, for allowing itself to be used to launder drug money from Mexico's Sinaloa cartel and Colombia's Norte del Valle cartel.

    CCB has branches in 24 countries and offers corporate banking services to Chinese and local companies. Its New York office is regulated by the state and the Federal Reserve Bank of New York.

    Eric Kollig, a Fed spokesman, declined to comment. No response to a request for a comment had been received from the bank's Beijing headquarters by press time.

      

    Related news

    MorePhoto

    Most popular in 24h

    MoreTop news

    MoreVideo

    News
    Politics
    Business
    Society
    Culture
    Military
    Sci-tech
    Entertainment
    Sports
    Odd
    Features
    Biz
    Economy
    Travel
    Travel News
    Travel Types
    Events
    Food
    Hotel
    Bar & Club
    Architecture
    Gallery
    Photo
    CNS Photo
    Video
    Video
    Learning Chinese
    Learn About China
    Social Chinese
    Business Chinese
    Buzz Words
    Bilingual
    Resources
    ECNS Wire
    Special Coverage
    Infographics
    Voices
    LINE
    Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
    Copyright ©1999-2018 Chinanews.com. All rights reserved.
    Reproduction in whole or in part without permission is prohibited.
    主站蜘蛛池模板: 曲松县| 阿合奇县| 汾阳市| 皋兰县| 威信县| 景德镇市| 宣威市| 公主岭市| 遂宁市| 临城县| 奈曼旗| 石阡县| 那坡县| 绥江县| 新兴县| 巫山县| 台前县| 株洲县| 新乡县| 永修县| 内丘县| 隆林| 大竹县| 鲁山县| 清水河县| 张北县| 玉林市| 晋州市| 西华县| 卓尼县| 泰顺县| 宜宾市| 陈巴尔虎旗| 兴化市| 新野县| 武定县| 兰州市| 洛川县| 新巴尔虎右旗| 潮州市| 屏山县|