Banamex bankers get CMPs and prohibitions

The FDIC has issued a Stipulated Order of Prohibition from Further Prohibition and Order to Pay a civil money penalty of $90,000 to Salvador Villar, CEO and Chairman of Banamex USA. The FDIC has determined (and Villar does not admit) that Villar, in his capacity as the CEO and Chairman of Banamex USA, engaged or participated in violations as an institution-affiliated party of the bank; his actions or inactions caused the bank to violate the Bank Secrecy Act, as amended; by reason of such violations, the bank has suffered financial loss or other damage; and such violations demonstrate Villar's continuing disregard for the safety or soundness of the bank. The FDIC also determined that such violations demonstrate Villar's unfitness to serve as a director, officer, person participating in the conduct of the affairs, or as an institution-affiliated party of the bank, any other insured depository institution, or any other agency or organization enumerated in 12 U.S.C. § 1818(e)(7)(A).

The FDIC issued a Consent Order of Prohibition form Further Participation and Order to Pay $70,000 to Donald Noseworthy, and a Consent Order to Pay $30,000 to Jorge Figueroa, both institution-affiliated parties of Banamex (Figueroa was an EVP).

The FDIC determined that: Noseworthy had engaged or participated in violations as an institution-affiliated party of the bank; his actions or inactions caused the bank to violate the Bank Secrecy Act, as amended, and its implementing regulations; by reason of such violations, the bank suffered financial loss or other damage; such violations demonstrate Noseworthy's continuing disregard for the safety or soundness of the bank; and such violations demonstrate Noseworthy's unfitness to service as a director, officer, etc.

The FDIC determined that it had reason to believe that Figueroa breached his fiduciary duty to the bank during 2011-2012, by failing to ensure his staff fully complied with the Bank Secrecy Act and regulations, and his breach of fiduciary duty was likely to cause more than a minimal loss to the bank.

In July 2015, Banamex was fined $140 million by the FDIC and the California Department of Business Oversight for failure to implement and maintain a satisfactory BSA/AML compliance program. See our earlier Penalty Page for additional information.