DFS Superintendent Harris Announces $30 Million Settlement With Industrial and Commercial Bank of China LTD. For Multiple Compliance Failures
Superintendent of Financial Services Adrienne A. Harris announced today that Industrial and Commercial Bank of China Ltd. (ICBC) and its New York branch have agreed to pay $30 million in penalties pursuant to a Consent Order entered into with the New York State Department of Financial Services (DFS). The Consent Order resolves the Department’s investigation into numerous Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance deficiencies and violations of New York law.
“Bank Secrecy Act and Anti-Money Laundering laws and regulations are critical national security protections, safeguarding financial markets and consumers from bad actors,” said Superintendent Harris. “Regulated institutions must be held accountable for failing to adhere to New York’s rigorous legal and regulatory standards.”
The Consent Order resolves the Department’s investigation into ICBC’s compliance failures, including multiple deficiencies in the New York branch’s BSA/AML compliance program from 2018 through 2022. The investigation also concluded that a former New York branch employee backdated several compliance documents at the direction of a then-current branch employee and that ICBC failed to report this misconduct to the Department in a timely fashion. Finally, the investigation concluded that ICBC unlawfully disclosed confidential supervisory information to an overseas regulator.
As part of its agreement with the Department, in addition to paying a $30 million penalty to New York State, ICBC will be required to create a written plan, acceptable to the Department, detailing enhancements to compliance policies and procedures, corporate governance and management oversight, customer due diligence requirements, and the handling of confidential supervisory information.
The Department coordinated its investigation with the Federal Reserve Board, which has reached a separate agreement with ICBC concerning the unauthorized disclosure of confidential supervisory information.
View the ICBC consent order.