The New York branch of a French banking company has agreed to overhaul its risk management program following dealings over a seven-year period that violated affiliate transaction requirements, the Federal Reserve said Thursday.
According to the Fed, the New York branch of Société Générale S.A., Paris, France, due to inadequate policies and procedures to identify covered transactions or systems to monitor compliance with such policies and procedures, at least between 2011 and 2018 engaged in transactions with a non-bank affiliate of the branch in violation of federal law and Fed rules.
The Fed said the bank branch has agreed to (among other things) strengthen oversight of its compliance risk management program, revise its internal audit program (with respect to the compliance risk management program), and possibly hire an independent third party to conduct a comprehensive review of the branch’s affiliate transaction program (if found necessary by the Federal Reserve, depending on the results of the internal audit).