Federal Reserve Clearance of Chinese Bank Branch Signals Approval of China’s AML Efforts, Say Consultants

By Matt Squire

The U.S. Federal Reserve Board has cleared the opening of a New York branch of China's largest bank, a sign that U.S. regulators approve of the country's recent efforts to quash money laundering. The board approved the branch application, from the Industrial and Commercial Bank of China (ICBC), on Tuesday, citing China's passage of anti-money laundering (AML) regulations in January and March 2007. The Federal Reserve also considered China's June 2007 accession to the international AML standards group, the Financial Action Task Force, in clearing the license, according to the agency. ICBC has said that it planned to apply policies...