The US Federal Reserve has ordered the Industrial & Commercial Bank of China Ltd. (ICBC) to improve its safeguards against money laundering, report Bloomberg, after finding “significant deficiencies” in the bank’s New York branch.
ICBC, the world’s largest lender, was found to failed to adequately report suspicious activity and so comply with the Bank Secrecy Act, legislation designed to combat money laundering.
The enforcement order, released on Tuesday, while not imposing any financial penalty, set out a list of requirements for the company to comply with, such as hiring an external firm to review its dollar-clearing activity in the second half of 2016.
ICBC has since agreed to address this issue within 60 days, the Fed said.