Regulators Take Action Against Bank of New York
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State and federal regulators formally sanctioned the Bank of New York for ”deficiencies” in its anti-money-laundering practices, according to an agreement signed by the bank yesterday at a monthly meeting of its board. The move, known as an enforcement action, does not include monetary penalties against the bank and falls short of a more serious ”cease and desist” order that regulators could have imposed. While the Federal Reserve and the New York State Banking Department took the Bank of New York to task for lax auditing and risk management procedures in businesses involving international banking, funds transfers and stock listings for foreign companies, the fact that the regulators’ actions were not more serious comes as something of a relief for the bank. The Bank of New York is still in the middle of a federal investigation involving possible money laundering related to more than $7 billion in funds transmitted from Russia and into the bank through a network of obscure companies tied to a company, Benex International, that is now defunct. More : query.nytimes.com |