Skip to content
BOL Conferences
Thread Options
#1870888 - 11/13/13 08:51 PM Bank Settles for $400,000
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
Thought some of you might be interested in this article.

Community Bank Pays Penalty
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
BSA/AML/CIP/OFAC Forum
#1870912 - 11/13/13 09:44 PM Re: Bank Settles for $400,000 Retread
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Very instructive article for smaller banks.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1870938 - 11/13/13 10:32 PM Re: Bank Settles for $400,000 Retread
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,512
New York City
^ Agreed. "This bank's failure to detect and report a ponzi scheme cost it 16 percent of its value."

If that doesn't get Management's attention, nothing will.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top
#1870986 - 11/14/13 01:53 PM Re: Bank Settles for $400,000 Retread
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Federal law requires banks to implement a robust and proactive anti-money laundering program to detect fraud and protect the public from harm.

Once again, the implication is that if the bank had filed SARs consumers would have been protected...

Hmmm, no conventional media coverage or chest pounding on the DOJ web site found...
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1870990 - 11/14/13 02:09 PM Re: Bank Settles for $400,000 Retread
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,798
You are here
Just kind of wondering the percentage of SARs vs the percentage of criminal convictions also the amount of restitution to customers based upon court cased filed because of bank filled SARs. I would think both numbers are low.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1871012 - 11/14/13 03:03 PM Re: Bank Settles for $400,000 Retread
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I tend to focus on "how did the bank not notice things were strange" and file SARs and shut the accounts down to protect the bank, with the side benefit of perhaps making it harder for the fraudster to con consumers.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1871021 - 11/14/13 03:16 PM Re: Bank Settles for $400,000 Retread
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,798
You are here
If the community bank held an account for a real broker (not saying that they should) it could have been used as a pass thru account to purchase valid investments. Not having expertise in these type of transaction could be a downfall for a smaller bank.

It also was not until recent that banks have been held accountable for ponzi customers. There may have been a few cases out there mainly due to the banks involvement but not many where the bank was not part of the scheme.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1871041 - 11/14/13 03:32 PM Re: Bank Settles for $400,000 Retread
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 85,020
Galveston, TX
That is one question that I find community banks don't ask themselves enough. I have seen some pretty high risk accounts in smaller community banks that they have no expertise in trying to manage. The key questions always is:

What is this customer doing banking at my bank??

For example (real life):

What is this corporation that is incorporated in the Cayman Islands that is transferring large sums of money all over the world that is supposedly involved in the pharmaceutical industry doing banking at a $150MM bank that is in the middle of west Texas??
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1871165 - 11/14/13 05:47 PM Re: Bank Settles for $400,000 rlcarey
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The owner is a friend of one of the directors. grin
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1871170 - 11/14/13 05:54 PM Re: Bank Settles for $400,000 Retread
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 85,020
Galveston, TX
The owner is a friend of one of the directors.

Translation: They happened to meet at the country club and the guy "appears" to be rich.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1871174 - 11/14/13 06:01 PM Re: Bank Settles for $400,000 Retread
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Run, do not walk.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1871256 - 11/14/13 07:01 PM Re: Bank Settles for $400,000 Elwood P. Dowd
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
As my old friend Paul Harvey would say, here is the rest of the story. The chest beating was in 2011.

Deferred Prosecution Agreement

Dismissal
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#1872005 - 11/18/13 02:54 PM Re: Bank Settles for $400,000 Retread
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,512
New York City
Randy - your posts along make trolling the BOL forums worth the effort.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top

Moderator:  Andy_Z