Bank of New York

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reportedly faces a $24 million fine to avoid a criminal indictment for allegedly failing to report suspicious activity at one of its branches.

The settlement, which would also include independent monitoring of its compliance procedures and other cooperation, is currently under negotiation with federal prosecutors, according to the

Wall Street Journal.

The government contends Bank of New York should've reported unusual transactions with a Long Island medical-equipment leasing company that was a loan customer of the bank.

A branch manager, Myrna Katz, has been indicted for bank and wire fraud in connection with the account, which involved RW Professional Leasing Services Corp. Prosecutors say RW Professional -- after receiving its loan -- was supposed to return leasing revenue to the bank in an escrow account but instead transferred about $92 million in loan proceeds to the bank before diverting money back to its owners.

The case is part of a crackdown on money laundering by the federal government that has already ensnared

Riggs National

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, which paid $25 million in May to settle allegations it mishandled the accounts of some Saudi diplomats.

Bank of New York promised to improve its control procedures in 2000 after an executive pleaded guilty to laundering up to $5 billion through the bank in the 1990s. The bank wasn't charged or fined, but faces tougher legal scrutiny now because of the previous pledge.

The stock closed Monday at $32.99.