Fed Orders Sumitomo Mitsui to Improve AML at NY Branch
26 Apr 2019

The US Federal Reserve on Thursday ordered the New York-branch of Sumitomo Mitsui Banking Corporation to improve its anti-money laundering (AML) controls for senior management and board directors.

Under the terms of the written order, the Japanese lender must draft a plan for ensuring that its top managers are made aware of, and take active roles in addressing, AML and sanctions compliance issues, particularly when they relate to the bank’s risk assessments of its internal controls, customer due diligence requirements linked to correspondent accounts and transaction monitoring.

The regulator also ordered the bank to ensure that its chief compliance officer is “given full autonomy, independence, and responsibility” for the branch’s AML program and has “meaningful decision-making authority” and an adequate staff. The order also obligates the bank to bolster its suspicious activity reporting policies and submit a plan for independent testing.

The Federal Reserve previously ordered Sumitomo Mitsui Financial Group to upgrade its AML controls in January 2007 and lifted the order in 2010.

In 2013, the financial group disclosed that it had approved an unspecified number of loans to individuals linked to an organized crime group through its credit company Cedyna Financial Corp.

One of Japan’s largest banks, Sumitomo Mitsui Banking Corp. has 461 branches, including 19 overseas branches, according to its website.

Image Source: https://commons.wikimedia.org/wiki/File:SMBC_Kobe_Office_Bldg_20091120-001.jpg”>via Wikimedia Commons</a>

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