March 1, 2016
Contact: Richard Loconte, 212-709-1691
INDUSTRIAL BANK OF KOREA AGREES TO STRENGTHEN ANTI-MONEY LAUNDERING COMPLIANCE AND CONTROLS AT BANK’S NEW YORK BRANCH
The New York State Department of Financial Services (DFS) today announced that the Industrial Bank of Korea (IBK) has entered into a Written Agreement with DFS and the Federal Reserve Bank of New York to strengthen compliance with Bank Secrecy Act/anti-money laundering (BSA/AML) requirements, as well as the regulations issued by the Office of Foreign Assets Control (OFAC) at the bank’s New York Branch.
The agreement was reached after an examination of the Branch found deficiencies relating to its risk management and compliance with New York State and federal laws, rules and regulations concerning BSA/AML and OFAC.
“DFS is committed to working with the Federal Reserve to ensure that banks are in complete compliance with established anti-money laundering controls. This agreement with IBK will strengthen existing safeguards and improve reporting of any suspicious activity”, said Maria T. Vullo, Acting Superintendent of Financial Services.
The agreement requires IBK to submit written plans to DFS and the Federal Reserve Bank of New York within 60 days documenting how its BSA/AML/OFAC compliance, monitoring, oversight, and suspicious activity reporting will be improved.
Written plans are required to include enhancements of internal controls for correspondent accounts. Additionally, the plans are to include measures to ensure that those with compliance responsibilities possess appropriate subject matter expertise, and that adequate resources are allocated to ensure compliance with BSA/AML/OFAC requirements. Under the agreement, IBK is also required to submit quarterly progress reports to the regulators.
To view a copy of the Written Agreement with IBK, please visit, link.