In the past month, the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), and the New York Department of Financial Services (NYDFS) have collectively assessed civil money penalties against a New York-based bank (the “Bank”) in relation to presumed violations of the Bank Secrecy Act (BSA) and federal and state anti-money laundering (AML) regulations. The penalties have arisen from the allegations leveled at the Bank, suggesting a considerable lack of adherence to requisite regulation.
The Bank has been under regulatory scrutiny due to reported deficiencies in its internal controls and lack of an appropriate risk-based BSA/AML compliance program. Predominantly, the allegations posit that the Bank failed to carry out necessary due diligence in certain transactions and failed to adequately report suspicious activity, thereby flouting federal and state anti-money laundering laws.
This action by the FDIC, FinCEN, and NYDFS not only exemplifies the concerted efforts of federal and state regulators to combat financial crime but also serves as a stern warning to other financial institutions about the vital importance of strict adherence to anti-money laundering laws and regulations.
The specific details about the penalties levied against the Bank by the FDIC, FinCEN, and the NYDFS have not been made public. However, such penalties typically involve hefty fines, mandated corrective action plans, potential individual accountability, and could even involve restrictions on business activities.
For more in-depth information and updates regarding this situation, check out the original article outlined by Weiner Brodsky Kider PC here.