Fed Fines Chinese Bank ICBC

United States regulators have reported fines of about $32.4 million against the Industrial and Commercial Bank of China.

Fed Fines Chinese Bank ICBC

On Friday, January 19, the Federal Reserve announced that a measure of material liability was applied regarding the mentioned financial institution due to the disclosure of confidential supervisory information.

The specified regulator fined a branch of the Chinese state-owned commercial bank $2.4 million. The Fed statement notes that the reason for the relevant decision regarding this organization was its involvement in the practice of unauthorized use and disclosure of confidential supervisory information. In this case, it is meant the make publicly available reports on bank audits and other data that belong to the category of materials prohibited from publication.

The fines were imposed jointly with the New York Department of Financial Services. The Fed’s data indicate that the financial penalties from the two regulators amounted to about $ 32.4 million.

American regulators also found that the New York branch of the Chinese state-owned commercial bank does not have any formal policies, procedures, training, or other internal controls designed to instruct employees on the rules for handling confidential supervisory information.

The Board of the financial institution and the management of the mentioned branch must submit to the Fed an acceptable plan to strengthen its compliance controls within 90 days.

The bank did not respond to a media request for comment on the fines.

As we have reported earlier, South Korea Fines Global Banks for Illegal Naked Short Selling.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.