Bank of Montreal ordered to fix oversight lapses

WASHINGTON (AP) - Federal regulators are ordering the Bank of Montreal to take steps to correct lapses in oversight that could allow the bank to be used for money laundering.

The Federal Reserve announced an agreement Friday with the bank, which is Canada's fourth-largest by assets. The Fed cited procedural deficiencies to prevent money laundering in the bank and its Chicago branch.

No financial penalty was imposed on the bank under the agreement. The bank agreed to submit detailed plans to the Fed and to Illinois banking regulators for strengthening its programs and correcting problems.

The remedial actions "are well under way," Bank of Montreal spokesman Paul Deegan said in a statement. The bank is "fully committed to the highest standards of regulatory compliance" with anti-money laundering rules in all of the jurisdictions in which it operates, Deegan said.

In addition to Canada and the U.S., the bank has offices around the world.

Money laundering attempts to take profits from illicit activities like drug dealing or arms trafficking and pass them through bank accounts or other legitimate businesses to obscure their origins.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Devastating
    The mother of an alleged high school rape victim speaks out

  • Tarnished Park
    Recent crimes have Dori worried about the state of one of his favorite Seattle parks

  • Plagued by Problems
    Ferry woes have added up this year with canceled routes, overcrowding & staff issues
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.