The US Federal Reserve has announced it is terminating its 2015 enforcement action against Bank of America for unsound practices in its FX business that led to the bank paying a $205 million fine.
The termination, which took place on November 22 but was only announced December 3, ends a saga that started following a Federal Reserve Bank of Richmond investigation into the bank’s FX business that found the bank lacked adequate governance, risk management, compliance and audit policies and procedures. Bank of America traders were found to have inappropriately shared information in chat rooms, generally around the WM Fix.
The cease and desist notice issued by the Fed included the demand that BofA make improvements in its internal controls, compliance, risk management and audit programmes and that the bank submit written plans to the Richmond Fed outlining its progress in these areas. The bank was also required to utilise personnel independent of the FX business to conduct an annual review of its controls, which itself was to be submitted to the Richmond Fed until such time as the central bank was comfortable that the business reform was complete.