“The Federal Reserve said Tuesday it found wide-ranging problems with M&T Bank Corp.’s efforts to combat money laundering, an issue that has delayed the bank’s acquisition of Hudson City Bancorp Inc.
The Fed, in a written agreement with M&T, said it found problems with the bank’s internal controls, including those intended to ensure compliance with federal anti-money-laundering laws and its review of potential high-risk customers.
M&T management agreed to overhaul its compliance programs and will submit a plan to the Fed within 60 days, including specific actions and timelines for completion.
Satisfying the Fed’s concerns is critical to M&T’s completion of the Hudson City acquisition. M&T said earlier this year it would need additional time to get regulatory approval for the deal as a result of the Fed’s concerns about its anti-money-laundering standards.”
Read the full Wall Street Journal article here