U.S. financial regulators are scrutinizing the high-risk accounts of Asian financial institutions based in regions with booming economies fueled by foreign investment. The Federal Reserve and the New York State Banking Department (NYSBD) entered into a written agreement with Tokyo-based Sumitomo Mitsui Banking Corp. on Wednesday ordering its New York branch to improve Bank Secrecy Act compliance deficiencies just a month after the same regulators cited another Japanese bank for its risk management deficiencies. "It's no wonder" regulators are scrutinizing the U.S. operations of those institutions as Japan's banking system regains its footing now that neighboring China opened its financial...
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