State Street Expects Fed Action In Investigation of Money Laundering

State Street Corp. said it expects an enforcement action by the Federal Reserve and the Massachusetts Division of Banks tied to shortcomings in compliance with the Bank Secrecy Act and anti-money laundering rules.

“If deficiencies in our historical reporting are identified as a result of the transaction review or if we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us,” the Boston-based company said May 14 in a regulatory filing for a proposed offering of depositary shares.

State Street in ...