UPDATED Facing regulatory sanctions for continued compliance deficiencies, Union Bank of California has created the new position of chief risk officer responsible for overseeing anti-money laundering and risk compliance reporting companywide. The San Francisco-based bank said in a statement Wednesday that parent UnionBanCal Corp.'s vice chairman Masashi Oka will assume the new role. The move is the second major shift in leadership this year at UnionBanCal, which said in July that it could soon be hit with a civil money penalty by U.S. regulators. UnionBanCal Corp. is mostly owned by Bank of Tokyo-Mitsubishi UFJ Financial Group Inc. Bank of Tokyo-Mitsubishi...
Federal bank examiners failed for at least four years to identify widespread signs of money laundering at Wachovia Bank, frustrating officials who helped levy a $160 million penalty against the institution last week.
The bank will forfeit $21.6 million in a deferred prosecution agreement with the U.S. Justice Department and pay a $10 million penalty for failing to adequately monitor a Mexican money transfer business that moved millions of dollars in illegal drug proceeds through the bank.
The Financial Services Agency ordered Bank of Tokyo to improve its New York branchs policies for identifying politically exposed persons, correspondent accountholders and other high-risk customers, including those who conduct frequent wire transactions.