The Federal Reserve and the New York State Department of Financial Services have ordered Credit Suisse to repair its anti-money laundering program after shortcomings were found in the Swiss company’s U.S. operation, according to an enforcement action released Tuesday.
Examiners with the Federal Reserve Bank of New York uncovered problems at Credit Suisse’s New York branch last year. The bank has 90 days to submit a plan for overhauling how suspicious activity is monitored, according to the
Though no fine is being levied, the deal does not prevent federal or state agencies from taking further action.
The announcement comes at a time anti-money-laundering reforms are in the spotlight. Congress
Credit Suisse said in a statement Tuesday that an “extensive enhancement plan” is already being implemented. The bank said that the improvements “will comply with every provision of the written agreement in a timely and thorough manner.”
The plan must improve on oversight of a Credit Suisse risk management subsidiary that was running its anti-money-laundering program, including a requirement that “appropriate escalation processes” are put in place, according to the agreement.
The plan must also set “clearly defined parameters regarding acceptable risks associated with specific types of customers,” according to the agreement. The bank is also required to assign risk ratings to specific customers based on the kinds of accounts they have, their location and activity with the bank, the agreement said.
