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Hua Nan Bank found flouting U.S. anti-money laundering rules

2018/04/20 10:36:27

Image taken from Wikipedia Commons

Washington, April 19 (CNA) The U.S. Federal Reserve on Thursday issued a cease and desist order against Taiwan's Hua Nan Commercial Bank and its agency in New York, citing non-compliance with anti-money laundering (AML) regulations.

In a statement, the Fed said it had identified significant deficiencies in the agency's risk management and compliance with applicable federal laws, rules, and regulations relating to AML compliance, including the Bank Secrecy Act (BSA), during the most recent examination that concluded on June 30, 2017.

However, Hua Nan has taken steps to mitigate its BSA/AML risk and to continue to implement improvements in the oversight of a compliance program involving the New York agency, the Fed said.

In addition, the Fed said, it reached an agreement Thursday with the bank and the agency to enter the cease and desist order and take affirmative action.

Under the agreement, a plan will be submitted in writing within 60 days to strengthen oversight of the agency's compliance with BSA/AML requirements and regulations issued by the Office of Foreign Assets Control of the United States Department of the Treasury, according to the Fed.

It was not the first time that a Taiwanese bank was found to be non-compliant with anti-money laundering laws in the U.S.

In January, the Fed slapped a US$29 million fine on the New York, Chicago and Silicon Valley branches of Taiwan's Mega International Commercial Bank after identifying significant deficiencies relating to their risk management and compliance with BSA/AML requirements.

(By Rita Cheng and Y.F. Low)