February 25, 2005
OCC Issues Order Against the Federal Branch Of Arab Bank PLC
WASHINGTON -- The Office of the Comptroller of the Currency announced today that the Federal Branch of Arab Bank, PLC, New York, New York, has consented to an order under which it will contract its activities and convert to an agency office. The order requires the Branch to maintain asset levels and to take various steps to improve its compliance program and internal controls.
The order was precipitated by the OCC’s determination that the branch had internal control weaknesses, particularly with regard to its international funds transfer activities. The order notes that Arab Bank and Branch management cooperated with and facilitated the OCC’s examination and investigation.
The order replaces a February 8, 2005, interim order that required the bank to preserve its assets and restrict its funds transfer activities until the broader action encompassed in today’s enforcement action could be completed.