OCC issues list of enforcement actions

The OCC has released a list of new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. The list includes one Order to Cease and Desist, one Order for a Civil Money Penalty against an individual, one Notice of Charges for Prohibition and Assessment of a Civil Money Penalty, and several terminations of earlier enforcement orders.

The individual civil money penalty of $20,000 was assessed against a current or former director of Merchants Bank of California, N.A., of Carson, California, who "caused, brought about, or participated in" the bank's violations of consent orders issued in 2010 and 2014 against the bank, and violations of 12 CFR §21.21 (Procedures for monitoring Bank Secrecy Act compliance). The OCC also found that the individual "failed to take necessary actions to ensure that the Bank corrected the deficiencies resulting in those violations. [See 2/28/2017 Top Story, California bank gets BSA/AML penalty.]

The Notice of Charges was issued to the former Chairman, CEO and controlling stockholder of The National Republic Bank of Chicago, Chicago, Illinois. The bank failed in 2014, and the FDIC estimated the loss to the Deposit Insurance Fund was more that $111 million. The respondent has 20 days from the date of service of the Notice to agree to the proposed orders of prohibition and $1 million civil money penalty, or request a hearing on the charges before an Administrative Law Judge.