Fed fines Chinese bank ICBC for disclosing confidential info

US REGULATORS have unveiled fines against the Industrial and Commercial Bank of China worth around US$32.4 million for disclosing confidential supervisory information, the Federal Reserve announced on Friday (Jan 19).

The Fed fined the Chinese state-owned commercial bank’s New York branch US$2.4 million for its “unauthorised use and disclosure of confidential supervisory information,” it announced in a statement.

The disclosures included “reports of bank examinations and other confidential communications by banking regulators,” it added.

The fines were levelled in conjunction with the New York Department of Financial Services. The sum of the fines from the two regulatory institutions was around US$32.4 million, according to the Fed.

The US central bank said it had determined that the bank’s New York branch “lacked any formal policies, procedures, training, or other internal controls,” designed to instruct employees how to handle confidential supervisory information.

Under the order announced on Friday, the Chinese bank’s board and branch management must submit an “acceptable” plan to the Fed to enhance its compliance controls within 90 days. AFP