Federal Reserve’s AML/BSA Compliance Crackdown Continues

AML BSA ComplianceThis week the Federal Reserve Bank of San Francisco announced that East West Bank, based in Pasadena, California and with subsidiaries in China and Hong Kong, has entered into an agreement to strengthen its anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance. The agreement covers many of the same areas as the New York Fed’s recent agreement with The Bank of Nova Scotia, which we discussed in a November 12 post, and calls for revamped compliance programs for key areas, including BSA/AML, Customer Due Diligence, and Suspicious Activity Monitoring and Reporting.

Of interest are two obligations the agreement imposes in connection with the Bank’s required Suspicious Activity Monitoring and Reporting.… Read More

NY DFS Cracks Down on Banks’ Anti-Money Laundering Deficiencies

Earlier this year, New York’s Department of Financial Services (“DFS”), the State’s banking and insurance regulator, announced that it was increasing and strengthening its enforcement efforts aimed at financial institutions’ anti-money laundering (“AML”) and Bank Secrecy Act (“BSA”) compliance deficiencies. The latest installment in the DFS’s crackdown on financial institutions came on November 5th, when the DFS and the Federal Reserve Bank of New York (the “New York Fed”) entered into an agreement with The Bank of Nova Scotia and its New York agency (collectively, the “Bank”), obligating the Bank to submit revised compliance programs for several key areas, including BSA/AML, Customer Due Diligence, and Suspicious Activity Monitoring and Reporting.… Read More