Bank of Tokyo-Mitsubishi censured by Federal Reserve

Bank of Tokyo-Mitsubishi censured by Federal Reserve

The New York branch of Bank of Tokyo-Mitsubishi has been ordered to improve operational controls in payments and clearing and recruit new compliance staff after a Federal Reserve probe into alleged failures in monitoring money laundering activity.

The 'cease and desist' order from the regualtors has been agreed by BTM, which has not admitted nor denied any wrongdoing.

The wrist-slapping follows the discovery of alleged "compliance and risk management deficiences" in the funds transfer clearing and correspondent banking departments of the Japanese bank's New York branch.

Under the agreement, the bank has agreed to draw up detailed plans to address the operational deficiencies identified by the regulators, including hiring new compliance staff and improving record-keeping and transaction monitoring.

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