The Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes\u00a0Enforcement Network (FinCEN) today announced the assessment of concurrent civil money\u00a0penalties of $15 million against First Bank of Delaware, Wilmington, Delaware, for violations of\u00a0the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws and regulations.<\/p>\n
The Bank\u00a0also settled civil charges, on related activities, brought by the U.S. Department of Justice, U.S.\u00a0Attorney\u2019s Office for the Eastern District of Pennsylvania. All penalties will be satisfied by a\u00a0$15 million payment to the United States Treasury.\u00a0In taking these actions, the FDIC and FinCEN determined that the bank failed to\u00a0implement an effective BSA\/AML Compliance Program with internal controls reasonably\u00a0designed to detect and report evidence of money laundering and other suspicious activity.<\/p>\n
Specifically, the bank failed to adequately oversee third-party payment processor relationships\u00a0and related products and services in a manner commensurate with associated risks. The civil\u00a0money penalty is the result of the bank\u2019s history of noncompliance with laws and regulations and\u00a0its numerous violations of the BSA.<\/p>\n
\u201cEffective Bank Secrecy Act and anti-money laundering programs that are commensurate\u00a0with the risk profile of the institution are vital to protecting our financial system,\u201d said Martin J.\u00a0Gruenberg, Acting Chairman of the FDIC. \u201cThe significant penalty assessed in this case\u00a0emphasizes the importance of having strong internal controls to assure compliance with antimoney laundering regulations and to detect and report potential money laundering or other illicit\u00a0financial activities.\u201d<\/p>\n
\u201cTo make money, First Bank of Delaware entered into risky lines of business and chose to disregard its Bank Secrecy Act responsibilities,\u201d said FinCEN Director Jennifer Shasky Calvery. \u201cAs a result of its failure to implement systems and controls to identify and report\u00a0suspicious activities, as required by the BSA, financial predators were able to victimize\u00a0consumers.\u201d<\/p>\n
Additionally, on November 16, 2012, Bryn Mawr Trust Company, Bryn Mawr,\u00a0Pennsylvania, purchased certain assets and assumed deposit liabilities from the First Bank of\u00a0Delaware. The Delaware Office of State Bank Commissioner terminated First Bank of\u00a0Delaware\u2019s charter and the FDIC terminated its deposit insurance.<\/p>\n
Financial institutions seeking more information on BSA compliance with third party payment processors can refer to the FDIC\u2019s January 2012 and November 2008 guidance on\u00a0payment processor relationships. In addition, FinCEN recently released an advisory on the\u00a0subject, \u201cRisk Associated with Third Party Payment Processors.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes\u00a0Enforcement Network (FinCEN) today announced the assessment of concurrent civil money\u00a0penalties of $15 million against First Bank of Delaware, Wilmington, Delaware, for violations of\u00a0the Bank Secrecy Act (BSA) and anti-money laundering […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-32628","post","type-post","status-publish","format-standard","hentry","category-press-releases"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=32628"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32628\/revisions"}],"predecessor-version":[{"id":32630,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32628\/revisions\/32630"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=32628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=32628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=32628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}