Thought some of you might be interested in this article and the civil lawsuit.

NC Bank to Pay $1.2 million

DOJ vs Four Oaks

In return for access to the ACH network, TPPP-TX has paid Four Oaks Bank more than $850,000 in gross fees.

Again, like the Bank of Delaware, it's their dealings with a TPPP and it's under FIRREA, not BSA.

Realizing that the complaint is not supposed to be an even handed analysis, after you read it you may wonder why the penalty isn't higher, perhaps an even multiple of $850,000.

It is amazing. I wonder how many will see their own conversations reflected here?

And you wonder why we continue to be so heavily regulated..........

The want to focus on serving the "local community." Clearly this client was way outside that business model.

I wonder if the FRB is going to take any action? After reading the civil action, it's pretty clear that management has not implemented an AML Program or just simply disregarded their AML responsibilities.

And thus..., my tag line - sadly.

A January 9 WSJ article (now available only to subscribers) was entitled "Banks Face New U.S. Moves Against Money Laundering" told of how DOJ was now targeting financial institutions. It wasn't anticipatory, it was talking about now.

The ABA's "Four Oaks" story linked above is no longer accessible. Here's another on the subject. Ever since Retread posted it, the story has bugged me because it was about a community bank in North Carolina and I actually thought I had heard it months before, but could not find it.

Turns out the one I remembered was about CommunityONE Bank also a community bank in North Carolina.

My point in bumping this thread is simply to say I think our industry is too focused on what happens to HSBC, JP Morgan, etc. and we do not realize that the mortars are landing much closer than we think they are.

Two community banks targeted by the local office of DOJ...no national headlines, but it's still a big deal. It's worth a couple clicks to review the DOJ web site(s) in your state and see how interested they are in structuring and in enforcing BSA or FIRREA against banks. (They all like to issue chest thumping press releases.)

Ken - that is an excellent point concerning prosecution targets within a state...maybe i'm just fortunate enough to live in a state that has so many crooked politicians and police that teh DOJ is too busy going after them that the banks are largely ignored!

You mean there is actually a state without crooked politicians?

When I worked for one of the big banks management in response to x bank offering or x bank doing, If they get caught it is a small fine but when we get caught it is front page news and a huge fine. I appears that the fine part is catching up on a % basis.

Judge approves settlement.

Four Oaks Bank Settlement