Fed Ends Action on Sumitomo Mitsui Over Laundering Controls (1)

The Federal Reserve said it has terminated an enforcement action against Sumitomo Mitsui Banking Corp., potentially paving the way for Japan’s second-largest lender to further expand its business in the US.

The Fed told the banking unit of Tokyo-based Sumitomo Mitsui Financial Group Inc. in 2019 to rectify weaknesses in its anti-money laundering systems, and gave the lender a list of tasks and deadlines for fixing deficiencies.

At the time, the Fed said weak controls were detected at a New York branch that’s under its supervision.

Sumitomo Mitsui has long stated its desire to grow in the US by ...