AML: Industrial and Commercial Bank of China fined $32 million

Posted Friday, January 19, 2024 2:56 pm

The Federal Reserve Board on Friday issued an enforcement action and fined the Industrial and Commercial Bank of China Ltd. and its New York branch approximately $2.4 million for their unauthorized use and disclosure of confidential supervisory information (CSI). New York state regulators fined the bank an additional $30 million.

Confidential supervisory information includes reports of bank examinations and other confidential communications by banking regulators. It is illegal to disclose confidential supervisory information without prior approval of the appropriate banking regulator.

The Branch lacked any formal policies, procedures, training, or other internal controls designed to instruct employees regarding how to properly handle CSI or how to prevent the unauthorized dissemination and use of CSI.

The Bank’s board of directors and the Branch’s management agreed to jointly submit a written plan acceptable to regulate to enhance the effectiveness of the Branch’s internal controls and compliance functions regarding the identification, monitoring, and control of CSI.

The Board's action is being taken in conjunction with an action by the New York Department of Financial Services, the state supervisor of the bank's New York branch. The penalties announced by the Board and the Department of Financial Services total approximately $32.4 million.

[FRB Order]

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