New York State Department Of Financial Services Fines Agricultural Bank Of China $215 Million For Violating Anti-Money Laundering Laws And Masking Potentially Suspicious Financial Transactions - DFS Investigation Uncovers Intentional Actions To Obscure U.S. Dollar Clearing Transactions, Including Counterfeit And Falsified Invoices Involving China And Russia And Omission Of Information Regarding Possible U.S. Dollar Trades With Sanctioned Counterparties - Bank Management Silenced And Severely Curtailed The Independence Of Whistleblower Who Attempted To Conduct Internal Investigations Of Suspicious Activity - Consent Order Requires Bank To Establish Effective Compliance Controls And To Retain Independent Monitor To Investigate 18 Months Of U.S. Dollar Clearing Activity

Financial Services Superintendent Maria T. Vullo today announced that Agricultural Bank of China (the Bank) will pay a $215 million penalty and install an independent monitor for violating New York’s anti-money laundering laws. The fine is part of a consent order entered into with the Department of Financial Services (DFS) pursuant to which the Bank shall take immediate steps to correct violations, including engaging an independent monitor reporting directly to DFS to address serious deficiencies within the bank’s compliance program and implement effective anti-money laundering controls. The DFS investigation discovered intentional wrongdoing, including actions by bank officials to obfuscate U.S. dollar transactions conducted through the New York Branch that might reveal violations of sanctions or anti-money laundering laws. The Bank also silenced and severely curtailed the independence of the Chief Compliance Officer (CCO) at the New York Branch, who tried to raise serious concerns to Branch management and conduct internal investigations regarding suspicious activity, leading the CCO to ultimately resign.