The Industrial and Commercial Bank of China and its New York branch will pay US$32.4 million in penalties for the unauthorised use and disclosure of confidential supervisory information, the Federal Reserve announced on Friday.

The Fed said the joint action, taken with New York's Department of Financial Services, came after the bank disclosed information to a third party without regulatory approval.

The US central bank said it had determined that the bank's New York branch "lacked any formal policies, procedures, training, or other internal controls," designed to instruct employees how to handle confidential supervisory information.

Under the order announced on Friday, the Chinese bank's board and branch management must submit an "acceptable" plan to the Fed to enhance its compliance controls within 90 days. (Reuters/AFP)