US tells Chinese bank to combat money laundering

China Construction Bank has been ordered to tighten money-laundering controls at its New York branch to resolve an enforcement action brought by the US Federal Reserve and the New York Department of Financial Services.

The world's second-largest bank by assets is working to address "deficiencies relating to the branch's risk management and compliance" with the Bank Secrecy Act, the regulators said on Tuesday. The order calls for better oversight of account holders and the creation of a new internal audit program.

The bank should submit plans for compliance and customer due diligence programs to help curb money laundering and suspicious transactions within 60 days, the Fed said.