California Pacific Bank to pay BSA/AML penalty
The FDIC has issued a Notice of Assessment of a Civil Money Penalty and Notice of a Hearing in the matter of California Pacific Bank, San Francisco, California, after finding that the bank has violated an FDIC Order to Cease and Desist issued to the bank on February 17, 2016. The bank had 20 days to answer the latest Notice and request a hearing.
The 2016 order required the bank to cease and desist from operating in violation of 12 CFR §§326.8 and 353.3 and to affirmatively comply with eight provisions related to compliance with the BSA and its regulations and the establishment of an effective BSA/AML compliance program. The FDIC conducted a visitation of the bank beginning on February 26, 2018, and determined that the bank was operating in violations of five provisions of the 2016 order. In an examination of the bank beginning on July 30, 2018, the FDIC concluded that the bank continued to be in violation of those five provisions.