Monday, April 19, 2021

Fed Orders Sumitomo to Bolster Anti-Money Laundering Controls in U.S. Branch


The Federal Reserve has ordered the New York branch of a large Japanese lender to bolster its compliance with anti-money laundering and sanctions laws.

The Fed on Thursday directed Sumitomo Mitsui Banking Corp., one of Japan’s biggest banks, to put stronger controls in place at its New York branch, citing lapses in oversight it had identified in a recent examination.

A spokeswoman for the bank didn’t immediately respond to a request for comment.

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Under a written agreement, the Fed directed Sumitomo to submit a plan to ensure its leadership is aware of compliance problems, and that the bank proactively identifies and tracks anti-money-laundering risks.

Among other requirements, the central bank also ordered the bank to ensure that it has a well-documented methodology in place for identifying suspicious transactions and conducting due diligence on foreign correspondent accounts.

In addition to its New York branch, Sumitomo has offices in San Francisco and Los Angeles, among other U.S. cities, according to its website.

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