The U.S. Federal Reserve and the New York Department of Financial Services (NYDFS) on Tuesday announced an agreement with Bank of Nova Scotia “to address deficiencies” in risk management and compliance with U.S. anti-money laundering (AML) laws.
Under the deal, Scotiabank has 60 days to submit a plan for enhancing oversight of its compliance with various AML requirements and regulations, including: steps the board will take to ensure appropriate oversight; improving its management information systems; defining internal responsibilities and accountability for compliance; and measures to ensure that compliance issues are appropriately tracked, escalated, and reviewed by senior management; among other things.
Scotiabank must also submit: a revised AML compliance program; a revised program for conducting appropriate due diligence on customer information and risk assessment; and a plan to ensure the identification and timely, accurate, and complete reporting of any suspected violations, or suspicious transactions.
Additionally, the bank must review wire transfer activity between July 1 and Decl 31, 2014, to determine whether suspicious activity involving high risk customers and transactions was properly identified and reported, and to report those findings to regulators.