Fed goes after BTMU over lax scrutiny
U.S. financial regulators took enforcement action Monday against Bank of Tokyo-Mitsubishi UFJ and some of its U.S. operations for their failure to comply with programs against money-laundering.
The regulators that issued the separate but coordinated actions were the Federal Deposit Insurance Corp., the Federal Reserve Board and the New York State Banking Department. The FDIC and NYSBD issued a joint cease-and-desist order (営業停止命令）against Bank of Tokyo-Mitsubishi UFJ Trust Co., a New York State-chartered banking corporation.
BTM UFJ Trust, without admitting or denying any wrongdoing, consented to the order, which concluded that the bank failed to implement adequate Bank Secrecy Act and compliance programs against money-laundering.
The order requires the unit of BTMU to review its programs against money-laundering and to take appropriate measurers to improve them within 120 days, including coming up with steps to tighten its internal controls within 60 days.
The unit agreed to establish a system of internal controls designed to ensure compliance with BSA to detect and monitor all transactions to ensure that they are not being conducted for illegitimate purposes.
No reference was made to fines or other penalties.