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Bloomberg

The US Federal Reserve fined Industrial and Commercial Bank of China US$2.43 million for improper use of financial-supervision information.
The New York Department of Financial Services, which also oversees the bank’s branch in the state, hit the firm with an additional US$30 million penalty.
“Confidential supervisory information includes reports of bank examinations and other confidential communications by banking regulators,” the Fed said in a statement Friday. “It is illegal to disclose confidential supervisory information without prior approval of the appropriate banking regulator.”
The Fed said it found that ICBC, the world’s largest lender by assets, lacked any formal policies, procedures, training or other internal controls to instruct employees on the proper handling of confidential supervisory information, or the prevention of unauthorised dissemination and use of such data.

@federalreserve issues enforcement action and fines the Industrial and Commercial Bank of China Ltd. and its New York branch approximately $2.4 million for their unauthorized use and disclosure of confidential supervisory information: https://t.co/pbVaA66SkE
— Federal Reserve (@federalreserve) January 19, 2024

ICBC did not immediately respond to requests for comment.
The New York Department of Financial Services said in a separate statement on Friday that its fine and a consent order with ICBC follow an investigation into the company’s compliance failures, including multiple deficiencies in the New York branch’s Bank Secrecy Act/Anti-Money-Laundering compliance programme from 2018 through 2022.
The investigation found that a former New York branch employee backdated several compliance documents at the direction of colleague, and that ICBC failed to report the misconduct to the department in a timely manner, according to the statement. ICBC also unlawfully disclosed confidential supervisory information to an overseas regulator, the department said, without specifying the regulator.
“Bank Secrecy Act and Anti-Money-Laundering laws and regulations are critical national-security protections, safeguarding financial markets and consumers from bad actors,” said Department of Financial Services Superintendent Adrienne Harris said in the statement.
ICBC flies top executives to US in race to contain LockBit hack fallout
“Regulated institutions must be held accountable for failing to adhere to New York’s rigorous legal and regulatory standards.”
An order by the Fed requires ICBC to submit, within 90 days, a written plan for enhancing internal controls and compliance functions around the handling of confidential supervisory information, among other reforms.
The plan must be acceptable to the Fed and adopted within 10 days. Then, within 3O days after the end of each quarter, the bank must submit progress reports on its reforms.
The Fed’s order against comes after the bank’s US unit was hit by a cyberattack in November, rendering it unable to clear swathes of US Treasury trades after entities responsible for settling the transactions swiftly disconnected from the stricken systems.


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The Industrial and Commercial Bank of China’s logo is seen outside a branch in Shanghai in August 2022. Photo: Bloomberg

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ICBC’s US arm was hit by a ransomware attack that disrupted trades in the US Treasury market on November 9. Photo: AP

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The ICBC logo is seen outside an Industrial and Commercial Bank of China branch in Shanghai in August 2022. Photo: Bloomberg

A booth for the Industrial and Commercial Bank of China is seen at the China International Fair for Trade in Services (CIFTIS) in Beijing in September 2020. Photo: Reuters

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The logo of Industrial and Commercial Bank of China (ICBC)  at its headquarters in Beijing. Photo: Reuters

Industrial and Commercial Bank of China near Pudong South Road, Shanghai. ICBC says it hopes to complete the assessment of its systems as soon as this weekend after a ransomware attack. Photo: Future Publishing via Getty Images

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In addition to the US$2.43 million fine, ICBC was hit with a US$30 million penalty in New York
The move comes after the bank’s US unit was hit by a cyberattack in November, rendering it unable to clear swathes of US Treasury trades


In addition to the US$2.43 million fine, ICBC was hit with a US$30 million penalty in New York.


US Fed fines Industrial and Commercial Bank of China for lapses in bank secrecy, sharing of data

In addition to the US$2.43 million fine, ICBC was hit with a US$30 million penalty in New York The move comes after the bank’s US unit was hit by a cyberattack in November, rendering it unable to clear swathes of US Treasury trades

In addition to the US$2.43 million fine, ICBC was hit with a US$30 million penalty in New York

The move comes after the bank’s US unit was hit by a cyberattack in November, rendering it unable to clear swathes of US Treasury trades