Fed Faults China Construction Bank Over Anti-Money-Laundering Efforts

From The Wall Street Journal –

“U.S. regulators faulted China Construction Bank Corp. for deficiencies in its program to spot money laundering, the latest U.S. crackdown on foreign-owned firms.

The Federal Reserve and New York’s state regulator found problems at the New York branch of one of China’s largest banks, according to an enforcement action released Tuesday.

The regulators required the bank to better follow basic elements of U.S. law, including responding to regulators’ information requests, identifying risky customers, tracking transaction data, documenting and investigating suspicious activity, and monitoring so-called correspondent accounts with other banks. They required the firm to write and execute a plan to fix the problems, and its board of directors agreed to do so on July 13, the document said.”

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JPMorgan to Pay $166 Million Over Debt-Collection Abuses

From GARP –

“JPMorgan Chase & Co. will pay $166 million and change credit-card collection practices after regulators found that the bank used abusive tactics to collect debts, the Consumer Financial Protection Bureau said on Wednesday.

The company agreed to resolve claims that its Chase Bank USA and Chase Bankcard Services Inc. units pursued the wrong borrowers, sought incorrect amounts or so-called zombie debt that was too old, or relied on documents with improper signatures, according to a CFPB statement.

Of the penalties, $136 million settles claims brought by the Consumer Bureau, 47 states and the District of Columbia. The Office of the Comptroller of the Currency imposed a $30 million penalty in a related action, CFPB said.”

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FATCA – A Case of Privacy Hypocrisy?

From The Market Mogul –

“Following the Financial Crisis of 2007-8, there has naturally been a spike in scrutiny of the banking sector. Many of the practices were condemned as traders were found to be conducting illegal practices in certain cases, there is still much debate about what measures can be taken to fully prevent any incidences of malpractice. A large chunk of the work done comes within compliance, and through the extensive work by Regulators. The added pressure of media, government and the general public has lead to a change in stance on banking and a by-product of this is a law passed by the US, titled FATCA.”

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