WASHINGTON - The Federal Reserve Board announced an enforcement action Wednesday against Banco Union of Caracas, Venezuela, and two agency bank affiliates in New York and Miami.

According to a written agreement signed by the bank and federal and state regulators, the action is designed to improve "the oversight and monitoring" of transactions between the bank and individuals who are employed by or have other affiliations with it.

The agency banks are required to receive specific permission from regulators before engaging in any transaction with such individuals or affiliates, and to determine, for each of their existing customers, whether or not they have any affiliation or other relationship with Banco Union.

The Miami agency bank has 60 days to undergo an independently-conducted forensic audit of disputed transactions criticized in recent bank examinations.

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