October 10 2018
Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services has fined United Arab Emirates-based Mashreqbank PSC and its New York branch $40 million for violations of U.S. Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws in the New York branch’s U.S. dollar clearing operations. Under a consent order announced today Mashreqbank must also immediately hire a third-party compliance consultant to oversee and address deficiencies in the branch’s compliance function, including compliance with BSA/AML requirements, federal sanctions laws and New York law and regulations. The bank must also hire a third party “lookback consultant” to conduct a review of the branch’s transaction clearing activity for April 2016 to September 2016, along with other remedial actions. The consent order stems from examinations by DFS and the Federal Reserve Bank of New York (FRBNY).