[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR612.2301]



[Page 94]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 612_STANDARDS OF CONDUCT AND REFERRAL OF KNOWN OR SUSPECTED CRIMINAL 

VIOLATIONS--Table of Contents

 

      Subpart B_Referral of Known or Suspected Criminal Violations

 

Sec. 612.2301  Referrals.



    (a) Each institution and its board of directors shall exercise due 

diligence to ensure the discovery, appropriate investigation, and 

reporting of criminal activity. Within 30 calendar days of determining 

that there is a known or suspected criminal violation of the United 

States Code involving or affecting its assets, operations, or affairs, 

the institution shall refer such criminal violation to the appropriate 

regional offices of the United States Attorney, and the Federal Bureau 

of Investigation or the United States Secret Service or both, using the 

FCA Referral Form. A copy of the completed FCA Referral Form, 

accompanied by any relevant documentation, shall be provided at the same 

time to the Farm Credit Administration's Office of General Counsel. In 

the event that a Farm Credit bank makes a loan through a Federal land 

bank association which services the loan, the Federal land bank 

association must inform the Farm Credit bank of any known or suspected 

violation involving that loan and the Farm Credit bank shall refer the 

violation to Federal law enforcement authorities under this section. A 

report is required in circumstances where there is:

    (1) Any known or suspected criminal activity (e.g., theft, 

embezzlement), mysterious disappearance, unexplained shortage, 

misapplication, or other defalcation of property and/or funds, 

regardless of amount, where an institution employee, officer, director, 

agent, or other person participating in the conduct of the affairs of 

such an institution is suspected;

    (2) Any known or suspected criminal activity involving an actual or 

potential loss of $5,000 or more, through false statements or other 

fraudulent means, where the institution has a substantial basis for 

identifying a possible suspect or group of suspects and the suspect(s) 

is not an institution employee, officer, director, agent, or other 

person participating in the conduct of the affairs of such an 

institution;

    (3) Any known or suspected criminal activity involving an actual or 

potential loss of $25,000 or more, through false statements or other 

fraudulent means, where the institution has no substantial basis for 

identifying a possible suspect or group of suspects; or

    (4) Any known or suspected criminal activity involving a financial 

transaction in which the institution was used as a conduit for such 

criminal activity (such as money laundering/structuring schemes).

    (b) In circumstances where there is a known or suspected violation 

of State or local criminal law, the institution shall notify the 

appropriate State or local law enforcement authorities.

    (c) In addition to the requirements of paragraph (a) of this 

section, the institution shall immediately notify by telephone the 

appropriate Federal law enforcement authorities and FCA offices 

specified on the FCA Referral Form upon determining that a known or 

suspected criminal violation of Federal law requiring urgent attention 

has occurred or is ongoing. Such cases include, but are not limited to, 

those where:

    (1) There is a likelihood that the suspect(s) will flee;

    (2) The magnitude or the continuation of the known or suspected 

criminal violation may imperil the institution's continued operation; or

    (3) Key institution personnel are involved.