Chinese bank to pay US regulator $30M for compliance failures

ISTANBUL

Industrial and Commercial Bank of China Ltd. (ICBC) and its New York branch agreed to pay $30 million penalty for multiple compliance failures, the New York State Department of Financial Services (DFS) said Friday.

The DFS said its investigation into ICBC’s compliance practices spans from 2018 through 2022, which concluded that ICBC unlawfully disclosed confidential supervisory information to an overseas regulator.

In addition to the penalty, ICBC will be required to create a written plan to include compliance policies and procedures, corporate governance and management oversight and customer due diligence requirements, according to a statement.

The US Federal Reserve, in addition, said Friday it fined the ICBC and its New York branch approximately $2.4 million for their unauthorized use and disclosure of confidential supervisory information.

"Confidential supervisory information includes reports of bank examinations and other confidential communications by banking regulators. It is illegal to disclose confidential supervisory information without prior approval of the appropriate banking regulator," the Fed said in a separate statement.