Taiwan-based bank branch faces enforcement action over anti-money laundering compliance

A New York branch of a Taiwan-based bank has agreed to a cease and desist order after “significant deficiencies” in risk management and compliance relating to anti-money laundering (AML) and the Bank Secrecy Act (BSA) were uncovered by regulators, the Federal Reserve said Thursday.

The Fed said the most recent exam by the Federal Reserve Bank of New York, and the New York State Department of Financial Services, of Hua Nan Commercial Bank Limited, New York Agency (a branch of Hua Nan Commercial Bank Limited of Taipei City, Taiwan), had uncovered the compliance shortcomings. The compliance issues, the Fed said, were related requirements to report suspicious activity and maintain an adequate BSA/AML compliance program.

The bank agreed to take action, within 60 days, to address issues including those related to corporate governance and management oversight, its BSA/AML compliance program, customer due diligence, suspicious activity monitoring and reporting program, and compliance with Office of Foreign Assets Control (OFAC) requirements.

Federal Reserve Board issues enforcement action with Hua Nan Commercial Bank Limited and Hua Nan Commercial Bank Limited New York Agency