On April 20, 2020, NYDFS issued an enforcement action against the Industrial Bank of Korea (“IBK”) for violations of New York’s anti-money laundering and recordkeeping obligations. It is the first of either of these types of BSA/AML enforcement actions issued by the Department in some time; this is not surprising, given that NYDFS, like other regulators, has been consumed with responding to the COVID-19 pandemic. Significant elements of the Consent Order include:
- a $35 million penalty to be paid to NYDFS;
- findings by NYDFS that IBK repeatedly failed to improve its BSA/AML program over many examination cycles;
- the requirement of remediation plans concerning the Bank’s BSA/AML program, suspicious activity reporting, customer due diligence and corporate governance; and
- two years of quarterly reporting obligations.
More detailed analysis and the Consent Order can be found on my blog post for the NYU Program on Corporate Compliance and Enforcement Blog here: