The deadline for M&T Bank Corp.’s acquisition of Hudson City Bancorp Inc. has been extended by five months while the Federal Reserve reviews M&T’s anti-money laundering procedures, the banks announced Friday.
M&T filed its regulatory applications in September 2012, and has learned the Fed has identified certain regulatory concerns with M&T’s procedures, systems and processes related to the Bank Secrecy Act and its anti-laundering compliance program, the company said in a statement.
The BSA is a 1970 statute requiring U.S. banks to assist government agencies in the detection and prevention of money laundering.
M&T has begun a major initiative, including hiring an outside consultant, to address Fed concerns, it said.
The $3.7 billion stock and cash deal announced Aug. 27, 2012, would incorporate Hudson City into M&T subsidiary Wilmington Trust Corp.
The date after which either bank can terminate the agreement, if it is not completed, has been changed to Jan. 31, 2014, from Aug. 27 this year, the banks said.
M&T ranks first in the Rochester market with $3.6 billion in local deposits, data from the Federal Deposit Insurance Corp. shows.
The Buffalo-based bank is scheduled to report its financial results for the first quarter on Monday.
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