Investors Bancorp in Short Hills, N.J., has joined the ranks of banks flagged by regulators for Bank Secrecy Act issues.

The $22 billion-asset company said in a regulatory filing that its bank entered into an informal agreement with the Federal Deposit Insurance Corp. and the New Jersey Department of Banking and Insurance for BSA and anti-money-laundering compliance.

The bank agreed to develop, adopt and implement internal controls to ensure full compliance with the BSA. The bank must also conduct a comprehensive validation of its BSA/AML automated compliance system and develop, adopt and implement effective training programs tied to the secrecy law. Finally, the bank will review certain transactions and accounts for BSA and AML compliance and establish a compliance committee within its board.

Investors noted that it had already enhanced its risk management and compliance programs by restructuring reporting lines, improving technology and increasing staff, including a chief risk officer and a head of BSA/AML and fraud/loss prevention.

Investors said its deal to acquire Bank of Princeton, which it announced in May, remains under processing by the FDIC. The company said it hopes to "demonstrate substantial compliance" with the agreement to move the approval forward, though it could provide no assurance that it would receive the FDIC's blessing.

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