ICBC Fined for Sharing Supervisory Information Without Consent

The Federal Reserve Board announced on Friday that ICBC had disclosed reports of bank examinations and other communications with regulators without obtaining proper approval. This is a direct violation of regulations that prohibit banks from sharing supervisory information without consent.

In conjunction with the New York Department of Financial Services, the Federal Reserve Board took action against ICBC. The New York regulators imposed a fine of $30 million, while the Federal Reserve Board fined the bank an additional $2.4 million.

The investigation conducted by New York regulators revealed that ICBC’s compliance deficiencies were at the core of this case. Employees at the New York branch were found to have backdated compliance documents and intentionally failed to report these violations promptly to the department. This failure to act in a timely manner was deemed unacceptable by Financial Services Superintendent Adrienne Harris.

Moreover, the investigation concluded that ICBC unlawfully shared the supervisory information with an overseas regulator, further exacerbating the severity of the case.

As part of the settlement agreement, ICBC has agreed to develop a comprehensive written plan to enhance its compliance policies and improve oversight and reporting requirements.

This incident serves as a stern reminder to all financial institutions about the importance of safeguarding confidential information and complying with regulatory guidelines.