Tokyo-Mitsubishi Settles U.S. Enforcement Case

Bank of Tokyo-Mitsubishi UFJ settled allegations the world's biggest bank by assets and some of its U.S. units lacked adequate anti-money laundering compliance programs, U.S.
authorities said Monday.

The Federal Reserve Board, the Federal Deposit Insurance Corporation and the New York State Banking Department said the bank agreed to a cease-and-desist order without admitting or denying any wrongdoing.

The federal and state banking regulators imposed no monetary fines against the Japanese bank, which agreed to address deficiencies in its compliance of policies and procedures, including the Bank Secrecy Act.

The bank agreed to conduct a review of its New York branch, where the duties and responsibilities of each officer and staff member involved with BSA activities will be examined, improve the branch's internal controls and design a program to submit timely and accurate suspicious activity reports, known as SARs.

Representatives of the bank's New York branch could not immediately be reached for comment.

It was not immediately known how the settlement might affect plans by the parent company, Tokyo-Mitsubishi UFJ Financial Group, to reorganize its U.S. operations under a holding company structure and its ability to make acquisitions.