The Federal Reserve (Fed) took action against San Francisco’s Bank of the Orient, after a recent examination of the bank revealed it did not fully comply with regulations related to anti-money laundering and bank secrecy.
The bank established in 1971, is privately held and was the first bank owned solely by Asians in California after the Second World War. The bank served Asian communities in San Francisco before opening branches in Honolulu and Xiamen.
The Fed’s move requires the bank to improve its oversight of anti-money laundering and bank secrecy, to take steps to insure compliance with related policies, and to set plans for oversight of its foreign branch in those areas.
The bank must also submit a customer due diligence program to identify customers who may be conducting illegal activity, and plans for submitting activity that raises suspicion to the law enforcement and supervisory authorities.