BOC Reaches Agreement with US on Fine Payment

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Last updated at: (Beijing Time) Tuesday, January 22, 2002

BOC Reaches Agreement with US on Fine Payment

Bank of China (BOC), one of the four biggest commercial banks of China, signed a draft with Office of the Comptroller of the Currency (OCC) under the Department of the Treasury of US for payment of a fine imposed for its misconduct.
Chinese Foreign Ministry spokesman Sun Yuxi confirmed Monday that the measures taken by the US side and PBOC to punish BOC branch in New York will be conducive to the bank's healthy development.

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Bank of China (BOC), one of the four biggest commercial banks of China, signed a draft with Office of the Comptroller of the Currency under the Department of the Treasury of US, which will be made known to the public soon, according to last Friday's Asian Wall Street Journal.

It is revealed that the agreement is for payment of a fine of 10 million to 20 million US dollars, which would probably become the largest US civil penalties levied on a bank in recent years.

Insiders said that as early as beginning of the year 2000 the US side had started its investigation on the New York branch of BOC. It is also said President of BOC Liu Mingkang had more than one time flown to the US to meet concerned officials and help with the investigation.

FM Spokesman on BOC New York Branch Case

Chinese Foreign Ministry spokesman Sun Yuxi confirmed Monday that the measures taken by the Office of the Comptroller of the Currency (OCC) and the People's Bank of China (PBOC) to punish the Bank of China's (BOC) branch in New York will be conducive to the bank's healthy development.

It is reported that the BOC New York branch was probed and punished for its misconduct by the PBOC, China's central bank, and the OCC, a division of the U.S. Department of Treasury.

Bank of China, one of China's major state-owned commercial banks, has placed great importance to this case and carried out a series of remedy measures to stamp out irregularities and improve the internal management, Sun said, adding that its efforts have been acknowledged by both Chinese and U.S. regulators.

As the most internationalized bank in China with impressive performance for years, the BOC has been improving its management framework in a bid to cope with challenges coming up with China's entry into the World Trade Organization (WTO), he said.

Sun said that the bank will pay attention to and strengthen its supervision and management on its home and overseas branches and continue to provide quality services to customers in line with its principle of consistent cautious management.

By PD Online Staff Li Heng

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