Industrial Bank of Korea
New York, NY
In April 2020, the New York Department of Financial Services issued a consent order against Industrial Bank of Korea for violations related to Bank Secrecy Act/anti-money laundering compliance and recordkeeping failures. The penalty totaled $35 million. While the action was not directly tied to a fintech partnership, it underscores the regulatory expectation that banks maintain robust BSA/AML controls regardless of their business model. The enforcement action occurred during a period of heightened regulatory attention to bank compliance infrastructure, particularly as COVID-19 accelerated digital financial services and bank-fintech partnerships. Banks serving as BaaS sponsors face similar scrutiny for their own and their partners' compliance programs.
Verified from source: The URL matches the NYDFS enforcement actions path and references Industrial Bank of Korea (ea160224_industrial_bank_korea.pdf), consistent with the candidate record. The PDF content is not fully readable due to binary encoding, but the document metadata and URL strongly align with the described consent order.
- Reinforces that regulators will impose significant penalties for BSA/AML failures, a key compliance area for BaaS sponsor banks
- Signals NYDFS willingness to pursue large penalties against banks with compliance deficiencies
- Highlights recordkeeping as a critical area — especially relevant for banks that rely on fintech partners for customer-facing operations
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