The U.S. Federal Reserve ordered Commerzbank AG and its U.S. branch on Thursday to hire an independent consultant to help the German bank clean up its internal anti-money laundering programs.
The Fed and the bank
first entered into an agreement in June 2012 that required Commerzbank to improve compliance in its bulk cash transactions business.
On Thursday, regulators said an examination of other business lines at the U.S. branch found inadequate controls to guard against money laundering.
The Fed did not fine the bank but issued a cease-and-desist order requiring it to hire independent consultants to study its anti-money laundering programs and to review certain transactions conducted between May and October of 2012.
Link to this news (Reuters): click here
Link to the Federal Reserve Cease and Desist order: click here