Inside Washington

June 3, 2015

WASHINGTON (6/3/15)--The Federal Reserve Board issued an enforcement action against State Street Corp. and State Street Bank & Trust Co. requiring the bank to improve its compliance with anti-money-laundering (AML) and Bank Secrecy Act (BSA) rules. The bank has 60 days to act (American Banker June 2) and has agreed to submit to the Fed a written outline of how it will bolster its program in a number of areas. The plan must include: improving information flow to the bank’s board of directors from the compliance office; providing a process to alert senior officers and directors to "significant matters;" increasing frequency and scope of its BSA/AML compliance risk assessments to embrace all the bank's lines of business; developing clear definitions of what is acceptable risk for each line of business, while tightening accountability for compliance staff, as well as internal controls and assessments. For more on the terms of the enforcement action, click here