There were some significant penalties involving BSA/AML program failures –A bank in New York City was hit with fines totaling $29.5 million by the Federal Reserve Board and the New York State Department of Financial Services (NYSDFS) for CIP rule failures and third-party risk management deficiencies related to issuance of general purpose reloadable prepaid cards; the FDIC, FinCEN and the NYSDFS hit another New York City-based bank with $25 million in penalties; and an International Banking Entity (IBE) operating in Puerto Rico paid FinCEN $15 million for multiple BSA compliance failures over a span of several years, and surrendered its IBE license after being placed in receivership by Puerto Rico’s Office of the Commissioner of Financial Institutions.
Learn more about John Burnett’s Annual OPERATIONS Compliance Recap webinar.