Dutch bank ABN Amro has reached an agreement with The Federal Reserve and US bank regulators to improve anti-money laundering procedures at its New York operations within the next 60 days.
The fourteen page agreement does not disclose specific allegations against ABN Amro but does say that "examiners have identified compliance and risk management deficiencies" in the correspondent banking and US dollar clearing lines of business at ABN Amro's New York branch.
The bank has 60 days to submit an anti-money laundering programme designed to tackle compliance failures at the bank's New York branch. The programme will focus on improving compliance with currency and transaction reporting regulations, as well as the reporting of suspicious activity.
The settlement, which was reached between the bank, The Federal Reserve Board of Governors and bank regulators in New York and Illinois, says the bank has to submit the anti-money laundering programme, along with testing and audit plans to ensure regulatory compliance. The bank also has to specify a written plan to provide effective training to all appropriate personnel at the New York branch.
Within 20 days of the agreement, the Bank and the New York branch will also hire an independent firm to conduct a review of accounts and transactions for a time period from at least July 23rd 2002 through to April 30th 2004, for suspicious activity.