Chinese bank weak on money laundering
THE US Federal Reserve has ordered the Agricultural Bank of China, one of China’s largest banks, to strengthen internal controls against money laundering.
The move came after a former staffer sued the bank last year, saying she had been mistreated and forced 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 earlier this month without any public admission of guilt.
But the Fed followed that up with an agreement that the bank would overhaul its internal controls to ensure transparency.
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 Agricultural Bank 60 days to complete a review and tell the Fed how it would improve oversight and monitoring of transactions to prevent money laundering. –