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Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders |
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FDIC Enforcement Decisions and Orders
{{4-30-00 p.C-4604}} A cease and desist order was issued, based on findings by the FDIC that it had reason to believe that respondent had engaged in unsafe and unsound practices. (This order was terminated by order of the FDIC dated 2-4-00; see ¶16,252)
[.1] Bank Secrecy ActCompliance Program"Knowing Your Customer" Policies
In the Matter of
IT IS HEREBY ORDERED, that the Bank, its institution-affiliated parties, as such term is defined in section 3(u) of the Act, 12 U.S.C. Section 1813(u), and its successors and assigns cease and desist from the following unsafe or unsound banking practices and violations of laws and regulations:
[.1] 1. Within sixty (60) days from the effective date of this ORDER, the Bank shall develop and implement a written plan of action regarding the Bank's Bank Secrecy Act ("BSA") Compliance Program and "Know Your Customer" ("KYC") Policies and Procedure (collectively, "Action Plan"). The Bank shall submit the Action Plan to the Regional Director of the FDIC's Atlanta Regional Office, Division of Supervision (the "Regional Director") and to the Comptroller of the State of Florida ("Comptroller") for review. Upon receipt of the FDIC's and the Comptroller's comments, if any, the Bank's Board of Directors shall review and approve the Action Plan. After the Bank's Board of Directors has approved the Action Plan, the review and approval shall be recorded in the minutes of the Bank's Board of Directors. Thereafter, the Bank and its successors and assigns shall implement the written Action Plan. At a minimum, the Action Plan shall:
(b) Require a system of adequate independent testing for the Bank's compliance with BSA, Part 353 and the FDIC's Rules and Regulations, and the Bank's KYC policies and procedures, and establish a plan for implementing such independent testing; (c) Require an appropriate training program for the Bank to assure that appropriate personnel are trained to comply with BSA, Part 353, and the Bank's KYC policies and procedures and establish a plan to implement such training; (d) Designate a senior Bank official responsible for coordinating and monitoring day-to-day compliance with BSA, Part 353, and the Bank's KYC policies and procedures.
[.3] 3. (a) Within thirty (30) days from the effective date of this order, the Bank shall establish and implement monitoring and reporting procedures for Suspicious Activity Reports ("SARs") and Currency Transaction
{{10-31-98 p.C-4606}}
[.4] 4. Within sixty (60) days from the effective date of this order, the Bank shall establish and implement a system for identifying, verifying, monitoring, and determining the appropriateness of accounts with frequent cash and wire transfer deposits and withdrawals. [.5] 7. Within thirty (30) days from the effective date of this ORDER, the Bank shall amend its audit policies, procedures, and practices, both with regard to internal audits and with regard to external audits, so that the Bank's compliance with the BSA, Part 353, and the Bank's KYC policies and procedures become subject to periodic review as part of the Bank's routine auditing. As long as this Order shall remain in effect, the Bank's internal and external audits shall include reviews of these areas, with significant exceptions reported directly to the Bank's Board of Directors. [.6] 8. Within sixty (60) days from the effective date of this ORDER, the Bank shall take all necessary steps, consistent with sound banking practices, to eliminate or correct all violations of law and regulations committed by the Bank, as described on pages 19 through 22 of the ROV. In addition, the Bank shall adopt appropriate procedures to ensure the Bank's future compliance with the Bank Secrecy Act and Part 353 of the FDIC Rules and Regulations.
[.7] 9. Following the effective date of this ORDER, the Bank shall send to its shareholders or otherwise furnish a description of this ORDER (i) in conjunction with the Bank's next written shareholder communication; and (ii) in conjunction with its notice or proxy statement preceding the Bank's next shareholder meeting. The description shall fully describe this ORDER in all material respects. The description and any accompanying communication, statement or notice shall be sent to the FDIC, Registration and Disclosure Section, 550 17th Street, Washington, D.C. 20429, and to the Comptroller, for review at least twenty (20) days prior to dissemination to shareholders. Any changes requested to be made by the FDIC or the Comptroller shall be made prior to dissemination of the description, communication, notice or statement. |
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Last Updated 7/7/2005 | legal@fdic.gov |
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