US Fed orders Chinese bank to tighten laundering controls

AFP

The Agricultural Bank of China has 60 days to complete a review and tell the US Fed how it would improve oversight and monitoring of transactions to prevent money laundering. AFP file photo

WASHINGTON (AFP) – The US Federal Reserve said Thursday that it had ordered the Agricultural Bank of China, one of China’s largest banks, to strengthen its internal controls against money laundering.

The move came after a former staffer sued the bank last year, saying said she had been mistreated and forced her from her job after she had informed the Fed that the bank was possibly in violation of rules on policing money laundering.

The staffer, Natasha Taft, settled her complaint with the bank in earlier this month without any public finding of guilt.

But the Fed followed that up Thursday with an agreement that the bank will overhaul its internal controls to ensure that transactions are not part of criminal activity.

The bank and the Fed entered the agreement “solely for the purpose of settling this matter without a formal proceeding being filed and without the necessity for protracted or extended hearings or testimony,” according to the agreement.

The agreement gave the bank 60 days to complete a review and tell the Fed how it would improve oversight and monitoring of transactions to prevent money laundering.

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Agricultural Bank of China. File photo by Reuters

The Agricultural Bank of China is one of the nation’s four biggest state-owned commercial banks.

In late 2015, a crackdown on alleged bribery by senior executives in the financial industry put China’s banking industry in the spotlight.

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2 Responses to “US Fed orders Chinese bank to tighten laundering controls”

  1. Rifleman III Says:

    Reblogged this on .

  2. daveyone1 Says:

    Reblogged this on World Peace Forum.

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