STT State Street Corporation

By Chelsey Dulaney 

State Street Corp. disclosed Thursday that it expects to face a public enforcement action from the Federal Reserve and Massachusetts Division of Banks over deficiencies in its compliance programs.

The company said it expects it will be required by a written agreement to improve its compliance procedures after deficiencies were found related to the Bank Secrecy Act, anti-money-laundering regulations and U.S. economic sanctions regulations.

The company said it also expects it will be required to retain an independent firm to review account and transaction data over a prior three-month period for identification of suspicious activity.

The company warned that if deficiencies are identified, it may face fines or other regulatory sanctions.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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