State Street Corp. was ordered to revamp its compliance programs
after deficiencies were found related to internal controls,
customer due diligence procedures and transaction monitoring.
State Street had warned last month that it would likely face a
public enforcement action from the Federal Reserve and
Massachusetts Division of Banks.
According to the agreement, the Boston-based bank will be
required to submit written plans detailing how it will strengthen
board oversight of its compliance program, boost its customer due
diligence procedures and ensure compliance with the Bank Secrecy
Act and anti-money-laundering requirements, where deficiencies were
found.
The bank will also bring on an independent firm to review
account and transaction data to see if State Street properly
identified and reported suspicious activity.
A representative from the company wasn't immediately available
to offer further details.
State Street's results have been weighed by higher regulatory
and compliance costs recently.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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