Japanese boosts anti-laundering controls

WASHINGTON -- Federal and state banking regulators have ordered Sumitomo Mitsui Banking Corp. of Japan to bolster controls at its New York branch to detect money laundering.

Sumitomo Mitsui, Japan's third-largest bank, agreed to make the improvements in an accord signed Monday with the Federal Reserve Board and the New York State Banking Department. The agencies announced the agreement, targeting alleged deficiencies at the New York branch, on Wednesday.

It was the latest in a series of moves against banks by regulators concerned about money laundering at financial institutions in the United States. Last month, several U.S. regulatory agencies took coordinated enforcement actions against another Japanese financial institution, the Bank of Tokyo-Mitsubishi UFJ Ltd. and some of its U.S. operations.

In October, Israel Discount Bank of New York was fined $12 million for allegedly deficient money-laundering controls. And Arab Bank PLC, one of the biggest financial institutions in the Middle East, agreed in August 2005 to pay a $24 million fine for allegedly inadequate controls at its New York branch.

http://seattlepi.nwsource.com/business/1310AP_US_Japanese_Bank.html