The world’s largest bank, The Industrial & Commercial Bank of China has been fined $32 Million by the New York’s Department of Financial Services (NYDFS) involving compliance problems at the bank’s New York branch. The NYDFS investigation found deficiencies in the anti-money-laundering and Bank Secrecy Act compliance programs at ICBC’s New York branch between 2018 and 2022. The Federal Reserve fined the bank another $2.4 million for alleged unauthorized use and disclosure of confidential supervisory information. NYDFS also found that compliance documents had been backdated and that ICBC had failed to report the issue to the NYDFS in a timely manner. Here is the NYDFS Consent Order on the Enforcement Action: https://www.dfs.ny.gov/system/files/documents/2024/01/ea_co_icbc_20240117.pdf
NYDFS needs to approve a plan written by the bank on how it will improve its compliance policies and procedures, corporate governance, management oversight, requirements for customer due diligence and the handling of confidential supervisory information. The Federal Reserve’s enforcement action focused on the use and disclosure of confidential supervisory information by ICBC and its New York branch.
In 2005, the Chinese government arrested several government officials in addition to bankers with regards to the accusation of a scheme to take illegally US$900 million from ICBC. In November 2015, ICBC Standard Bank, an overseas subsidiary acquired in February of that year, agreed to pay a fine of a maximum of $40 million to UK authorities. I n 2018, the US Federal Reserve had found “serious deficiencies” of the bank, on, anti-money laundering protections. On 12 August 2021, a former senior banker at Industrial and Commercial Bank of China, Gu Guoming was sentenced to life in jail by Chinese authorities, after being found guilty of bribery.
Jeffrey Newman Esq. and members of his firm represent whistleblowers under the SEC, CFTC and FINCEN whistleblower programs. Persons providing original information to these agencies through counsel may receive rewards totaling up to 30 percent of a successful recovery made by the SEC, CFTC OR FINCEN and the names and identification of the whistleblowers are kept confidential. His firm also represents whistleblowers in healthcare fraud cases relating to Medicare of Medicaid. Attorney Newman can be reached at Jeff@Jeffnewmanlaw.com or at 617-823-3217
