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
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.
ICBC did not immediately respond to requests for comment.
