The world’s biggest bank has agreed to pay over $32 million in penalties for unauthorized disclosure of confidential information and failure to comply with US anti-money laundering rules in recent years.
The US Federal Reserve said on Friday that the Industrial and Commercial Bank of China (ICBC) – estimated last year to have $5,669 billion in total assets – and its New York branch would pay $32.4 million in penalties.
The Fed said joint action, taken with New York’s Department of Financial Services (NYDFS), came after the bank disclosed information to a third party without regulatory approval.
NYDFS said in a separate statement that an ICBC employee disclosed that supervisory information to a foreign regulator, and that the order resolved “numerous” compliance failures, including multiple deficiencies in the New York branch’s anti-money laundering programme from 2018 through 2022.
ICBC in New York could not immediately be reached for comment.
ALSO SEE: Debt-Laden Chinese Regions Told to Stop Some State Projects
US, Chinese financial officials agree to meet again
Meanwhile, in related news, meetings between US Treasury and Chinese financial officials in Beijing this week concluded with both sides agreeing to continue to meet regularly, the Treasury Department said on Friday.
US officials also indicated that Treasury Secretary Janet Yellen looked forward to a return visit to China at an “appropriate time,” the department said in a statement.
The meeting of the Financial Working Group included discussions on financial stability and capital markets issues, international financial institutions, sustainable finance, cross-border payments and data and efforts to fight money laundering and financing of terrorism.
“US officials also frankly raised areas of disagreement during the conversations,” the Treasury said, without identifying these points of contention.
The two sides also reviewed previous exchanges on climate stress testing and frameworks for resolving global systemically important banks in each country.
The Financial Working Group and a parallel Economic Working Group were established in September 2023 after Treasury Secretary Janet Yellen visited Beijing to re-establish economic communications with her Chinese counterparts.
The groups last met in San Francisco in November ahead of the Asia Pacific Economic Cooperation (APEC) Summit, where Yellen also met with her Chinese counterpart, Vice Premier He Lifeng and agreed to “intensify communication.” He also invited her to return to China this year.
The members of the financial group, led on the US side by Assistant Secretary for international finance Brent Neiman and Undersecretary for Domestic Finance Nellie Liang, also met with He in Beijing, the Treasury said.
The China delegation was led by the People’s Bank of China, with participants from other agencies.
- Reuters with additional input and editing by Jim Pollard
ALSO SEE:
Debt-Laden Chinese Regions Told to Stop Some State Projects
China Saw 5.2% Growth Last Year, But 2024 Likely to be Tougher
China Not a Risk, Premier Li Tells Davos Business Leaders
