The Federal Reserve cited Germany's second-largest bank Thursday for broad deficiencies in its anti-money laundering program, including insufficient risk-ranking, suspicious activity reporting and bulk cash controls. The 9-page written agreement with Frankfurt-based Commerzbank AG and its New York branch also called for the bank to complete a look-back of transactions made since Sept. 1, 2010. The bank must additionally improve its enhanced due diligence for foreign affiliates and clients and bolster its independent testing and internal training, the regulator said. Commerzbank is "committed to take all necessary measures to comply with the additional compliance and reporting requirements agreed [to] with...
When imagining how dirty money is moved around the country, "think of FedEx," says Joseph Burke, chief of the National Bulk Cash Smuggling Center in Vermont. The center is tasked with tracing the sometimes elaborate path of drug proceeds from point-of-sale to the bank teller's window.
A number of large U.S. and international banks are dropping customer accounts and services tied to high-risk geographical regions and lines of business in response to regulatory pressure, including enforcement actions.
The Federal Reserve Thursday ordered Germany's second largest bank to police its correspondent accounts and improve its customer risk assessments' the second such enforcement action in little more than a year.