The state of New York has imposed a $215 million fine on the Agricultural Bank of China for violating its anti-money laundering law. The bank was found responsible for obscuring the trail of dollar transactions by several suspicious clients. The regulators have further ordered the bank to appoint an independent monitor for auditory purposes.

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The Department of Financial Service of New York issued the consent order on Friday. The state regulator has heightened its vigilance over foreign banks for clamping down the violations of money laundering law.

The Agricultural Bank of China has also been found guilty of trying to silence a whistleblower. Earlier in September, the bank was asked to revamp its money-laundering control measures as it was found to have 'significant deficiencies.'

Maria Vullo of the Department of Financial Service said, "The failure of a strong compliance program at the New York Branch of the Agricultural Bank of China created a substantial risk."

She added that such deficiency may have been exploited by terrorist groups or other criminals for supporting their "illicit activities." The bank is alleged to have used various tactics including sending of coded messages using an international wire messaging system. It was sued by a former chief compliance officer, earlier this year.

The state of New York has taken steps against other banks as well. In 2014, the state had imposed record $8.9 billion fine on BNP Paribas bank for violating US sanctions against Cuba, Iran and Sudan. The fine was slapped as a clear message to financial institutions.

The Agricultural Bank of China, the third largest lender in the country, manages nearly $2.8 trillion worth of assets. Its New York branch manages $9.5 billion in assets. The officials of the bank have not issued any comment yet.

TagsAgricultural Bank of China, Department of Financial Service, BNP Paribas bank