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Top Story Compliance Related

09/14/2001

Matz and Cordray to host meeting

NCUA Director Matz and CFPB Director Cordray will host a free town hall meeting on February 12, beginning at 3 pm ET. During the webinar, participants will be able to pose questions about any topic relating to the credit union industry or the work of CFPB. Online registration is required.

09/14/2001

OFAC Kingpin Act designation

Pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), OFAC has announced the designation of Jose Rodrigo Arechiga Gamboa, a.k.a. Chino Antrax, a Culiacan, Sinaloa, Mexico-based senior lieutenant of the Sinaloa Cartel. Gamboa was designated for his role in controlling Los Antrax, an extremely violent arm of the Ismael "Mayo" Zambada Garcia organization and for playing a significant role in international drug trafficking. Information regarding the designation has been posted in a BOL OFAC Update.

09/14/2001

OFAC Kingpin Act designation

Pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), OFAC has announced the designation of Jose Rodrigo Arechiga Gamboa, a.k.a. Chino Antrax, a Culiacan, Sinaloa, Mexico-based senior lieutenant of the Sinaloa Cartel. Gamboa was designated for his role in controlling Los Antrax, an extremely violent arm of the Ismael "Mayo" Zambada Garcia organization and for playing a significant role in international drug trafficking. Information regarding the designation has been posted in a BOL OFAC Update.

08/31/2001

Top Stories for September 2001

  • FDIC Issues FIL on Insurance Q&As

    FDIC FIL-84-2001 informs state nonmember banks about the Interagency responses to questions on the insurance consumer protection rules. The questions and answers, which we wrote about previously in Top Stories, were issued August 17, 2001. They can now be accessed in html format on BankersOnline.com. FDIC: FIL-84-2001 9/28/01

  • Executive Order Targeting Terrorist Assets

    As earlier reported, President George W. Bush issued an Executive Order targeting terrorists. As a result, a number of new names have been added to Treasury's Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons list. FDIC:FIL-85-2001 9/28/01

  • FDIC Publishes OSFI Monthly Warning Advisory

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 19), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-86-2001 9/28/01

  • OTS Announces 14 August CRA Ratings

    The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in August 2001. OTS 01-65 9/28/01

  • Federal Reserve Board launches interactive web site for students, educators, and the general public

    This site offers students, educators and the general public an introduction to the workings of the Federal Reserve System. FRB Press Release 9/28/01

  • FRB of Boston Releases Guide On Check Imaging

    Federal Reserve Bank of Boston released a guide entitled "A Framework for Exchanging Image Returns ," (pdf version) to help banks handle the technical, operational, and legal issues involved in exchanging check images. 9/27/01

  • FRB Extends Comment Deadline on Payments System Risk Issues

    The FRB has extended the deadline for its request for comment on the potential longer-term direction of its payments system
    risk policy. The new deadline is November 16, 2001. 66FR49385 (text) 66FR49385 (pdf) 9/27/01

  • FRB Issues Final Rule to Change the Discount Rate

    The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. 66FR49098 (text) 66FR49098 (pdf) 9/26/01

  • OCC Issues Final Rule on Operating Subsidiaries of Federal Branches and Agencies

    The OCC is amending its regulations to provide that a Federal branch or agency may establish, acquire, or maintain an operating subsidiary in generally the same manner that a national bank may acquire or establish an operating subsidiary. 66FR49093 (text) 66FR49093 (pdf) Correction 9/26/01

  • NCUA Assists FBI Investigation In Correspondence With The Nation's Credit Unions

    NCUA Chairman Dennis Dollar issued a NCUA Letter to Credit Unions upon receiving a formal request for assistance by the Federal Bureau of Investigation (FBI). NCUA Press Release 9/26/01

  • Community Bank, Covina, CA - Missing Official Checks

    The FDIC has been informed by the Community Bank, Covina, California, that 300 of the bank's official checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-83-2001 9/26/01

  • Ventura Savings Bank - Fictitious Checks in Circulation

    The FDIC has learned that fictitious "official" checks and "certified" checks are in circulation. The checks bear the name Ventura Savings Bank, 1010 Huntcliff Blvd., Roswell, GA 33050. "MEMBER FDIC" is also printed on the checks. FDIC:FIL-82-2001 9/26/01

  • Terrorist Additions to the OFAC SDN List

    As earlier reported by BOL, the president has issued a new Executive Order targeting terrorists, and a number of new names have been added to OFAC's Specially Designated Nationals List. Click here to access the summary. OCC:Alert 2001-9 9/26/01

  • OCC Issues Proposed Rule to Set Forth the Formula for the Semiannual Assessment

    The amendment would revise the formula to establish a minimum base amount for the semiannual assessment for the first assessment bracket ($0-$2 million) of the assessment schedule. 66FR48983 (text) 66FR48983 (pdf) 9/25/01

  • OTS Updates Locations for Filing CRA-Related Agreements

    In accordance with the joint rule titled “Disclosure and Reporting of CRA-Related Agreements,” the OTS has announced that all parties filing CRA-Related agreements or annual reports with OTS should mail paper copies to CRA Sunshine, c/o Dissemination Branch, Office of Thrift Supervision, 1700 G St., N.W., Washington, D.C. 20552 or may now file electronic versions at crasunshine@ots.treas.gov. OTS 01-63 9/25/01

  • Interagency-sponsored public workshop on Gramm-Leach-Bliley Act privacy notices set for Dec. 4th

    The workshop will provide a forum to identify successful GLB Act privacy notices, discuss strategies for communicating complex information, and encourage industry self-regulatory efforts and consumer and business education. The workshop will bring together financial institutions, consumer and privacy groups, experts on readability and consumer communication, and others to discuss the issues through moderated panel discussions. Interagency Press Release, OTS, FTC , OCC:NR 2001-84, FDIC-PR-69-2001, NCUA Press Release 9/25/01

  • NCUA Chairman Urges "Diligent Management" In America's Credit Unions As Nation Faces Economic Uncertainty

    Agency Chief Says Credit Unions “Well Positioned But Not Immune”. NCUA Chairman Dennis Dollar urged credit unions
    to provide “diligent management” as the nation faces a period of economic uncertainty and signs of a downturn. NCUA Press Release 9/24/01

  • Credit Unions can make Charitable Contributions

    Credit unions are stepping forward to assist families, businesses and fellow credit unions affected by last week's tragic events by using their authority to make charitable contributions and donations. NCUA Press Release 9/24/01

  • Institution Directory

    The FDIC's Institution Directory (ID) and Statistics on Depository Institutions (SDI) have been updated to reflect June 30, 2001 financial information. FDIC Institution Directory 9/24/01

  • FDIC Issues Summaries of the Principal Requirements of the National Flood Insurance Act

    Flood hazard determinations must be performed before the closing of loans secured by buildings or
    mobile homes, including loans secured by commercial real estate. Lenders must document the
    determination using the Standard Flood Hazard Determination Form provided by the Federal Emergency
    Management Agency (FEMA) and retain that form for the life of the loan. FDIC:FIL-81-2001 Summary 9/24/01

  • Regulators Distribute Call Report for Third Quarter 2001

    Banks should complete your third quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by October 30, 2001, in accordance with the filing requirements discussed below. FDIC:FIL-80-2001 9/24/01

  • FDIC Reports Second Quarter 2001 Financial Results for Bank and Thrift Insurance Funds

    The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $706 million for the first six months of 2001, compared to $366 million for
    the same period last year. FDIC:PR-68-2001 9/24/01

  • FRB Extends Deadline for Public Comment on Policy on Payment System Risk

    As a result of the September 11 terrorist attacks, some organizations with an interest in the potential longer-term policy direction of the Board's payments system risk policy have had to devote significant resources to ensuring the continued smooth functioning of the payments system and financial markets. The Board has extended the original October 1 comment deadline to
    provide these organizations with adequate time to analyze the issues raised in the notice and to incorporate their perspectives on recent financial market experiences. FRB Press Release 9/24/01

  • Treasury Releases 2001 Money Laundering Strategy

    The Administration's 2001 Money Laundering Strategy is now available on the Treasury Department web site.
    9/21/01

  • NCUA Lifts Mandatory Compliance Date Electronic Delivery of Disclosures Required by TISA

    Once a permanent final rule is issued, NCUA will afford credit unions a reasonable period of time to comply with the rule. 66FR48206 (text) 66FR48206 (pdf) 9/19/01

  • NCUA Issues Final Rule on Nondiscrimination in Real Estate-Related Lending

    The rule provides a federal credit union (FCU) with flexibility in how it gives notice when advertising and allows an FCU to display either the NCUA lobby poster or a similar poster prepared by the United States Department of Housing and Urban Development. 66FR48205 (text) 66FR48205 (pdf) 9/19/01

  • NCUA Chairman Dennis Dollar Statement Regarding JoAnn Johnson

    President George W. Bush has announced that he intends to nominate JoAnn Johnson of Iowa to serve on the National Credit Union Administration Board. NCUA Press Release 9/19/01

  • FBI Request for Records Search by Banking Organizations

    The Federal Bureau of Investigation has provided the FRB and the other federal financial institutions supervisory
    agencies with a public list of the names of alleged subjects under investigation by the FBI in connection with the World Trade
    Center and Pentagon attacks, and asked all domestic and foreign banking organizations operating in the United States to check
    their records for any relationships or transactions with the named individuals. FRB:SR 01-22, FDIC:FIL-79-2001, OCC:2001-8 9/19/01

  • FDIC Ribbon-Cutting Ceremony in Chicago Launches Nationwide Money Smart Program

    The FDIC held a ribbon-cutting ceremony at the Pilsen One-Stop Center in Chicago, Illinois to launch its Money Smart financial education program. FDIC:PR-67-2001 9/19/01

  • Dennis Dollar Designated NCUA Chairman

    President George W. Bush announced that he has designated NCUA Board Member Dennis Dollar as the agency's Chairman. NCUA Press Release 9/18/01

  • FRB Decreasing the Discount Rate

    The FRB approved actions by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta and Kansas City, decreasing the discount rate at the bank from 3 percent to 2-1/2 percent, effective immediately. FRB Press Release 9/18/01

  • Federal Open Market Committee Lowers Target for the Federal Funds Rate

    The Federal Open Market Committee decided today to lower its target for the federal funds rate by 50 basis points to 3 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 2-1/2 percent. The Federal Reserve will continue to supply unusually large volumes of liquidity to the financial markets, as needed, until more normal market functioning is restored. Federal Reserve Press Release 9/17/01

  • FFIEC Distirbutes the June 30, 2001 Uniform Bank Performance Report

    The June 30, 2001 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit
    Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public. FFIEC Press Release 9/17/01

  • OCC Transmits Insurance Q& As

    OCC 2001-43 simply informs national banks about the interagency Q&As issued previously that relate to consumer sales of insurance and the Q&As themselves are transmitted to national banks as an attachment to OCC 2001-43. 9/17/01

  • NCUA Disaster Assistance Activated for New York City and Arlington, Va. Credit Unions

    The NCUA activated its disaster relief policy to assist credit unions and their members in New York City and Arlington County, Va., following the destruction of the Twin Towers yesterday in New York City and the damage to the Pentagon in Arlington, Va. NUCA Press Release 9/17/01

  • NCUA Acting-Chairman Dennis Dollar Statement

    9/17/01

  • FDIC Publishes OSFI Monthly Warning Advisory

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published a "Monthly Warning Advisory" (Issue No. 18), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-78-2001 9/17/01

  • OTS Reports That Thrift Industry Has Been Operating Normally in Wake of Crisis

    The OTS reported that the thrift industry has been operating normally and that the industry has taken steps to assist customers affected by events related to the September 11 terrorist attacks. OTS 01-61
    9/17/01

  • OCC and ABA Postpone Conference on Community and Economic Development

    The OCC and ABA announced that the 2001 National Community and Economic Development Conference scheduled for September 17-19 in Baltimore Maryland has been postponed due to the national tragedy of September 11 and the uncertainty of U.S. airline service.
    OCC:NR 2001-83 9/17/01

  • OCC Announces 19 New Enforcement Actions and 5 Terminations

    The OCC announced 19 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2001- 81 9/17/01

  • Swap arrangement between the Federal Reserve and the Bank of England

    The Federal Reserve and the Bank of England have agreed to establish a temporary swap facility
    in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars. FRB Press Release 9/17/01

  • Federal Reserve encourages banks to work with customers affected by disaster

    The Federal Reserve encourages state member banks and bank holding companies to work with customers who directly or indirectly have been affected by the events of September 11. FRB Press Release 9/17/01

  • Federal Reserve and Bank of Canada augment swap facility

    The Federal Reserve and the Bank of Canada have agreed to a temporary augmentation of their existing swap facility in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars. FRB Press Release 9/17/01

  • Swap arrangement between the Federal Reserve and the European Central Bank

    In order to facilitate the functioning of financial markets and provide liquidity in dollars, the Federal
    Reserve and the European Central Bank have agreed on a swap arrangement. FRB Press Release 9/17/01

  • Joint Interagency Statement

    Market responses in the aftermath of the tragic events of September 11 could lead to temporary balance
    sheet growth at some banking organizations, including thrifts. This growth could occur if, for example,
    during this period corporate borrowers make unusual draws on their existing lines of credit or request new
    lines in response to a perceived need for extra liquidity, or if a banking organization were to receive
    unusually large deposit inflows. Absent other factors, increases in extensions of credit or large deposit
    inflows would likely result in an increase in total assets. FDIC-PR-66-2001, FRB Press Release, OCC NR 2001-82 , OTS 01-62 9/17/01

  • National Infrastructure Protection Center (NIPC) Issues Advisory for Increased Cyber Awareness

    The National Infrastructure Protection Center (NIPC) expects to see an upswing in incidents as a result of the tragic events of September 11, 2001. ADVISORY 01-020 9/14/01

  • OCC Releases CRA Evaluations For 13 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of August 15 through September 14. OCC:NR 2001- 80 9/14/01

  • Swap arrangement between the Federal Reserve and the European Central Bank

    In order to facilitate the functioning of financial markets and provide liquidity in dollars, the Federal
    Reserve and the European Central Bank have agreed on a swap arrangement. FRB Press Release 9/14/01

  • Supervisory Flexibility Due to September 11 Disasters

    The FDIC has issued supervisory guidance that it issued to its examiners relating to the tragic events of September 11, 2001.
    FDIC:FIL-77-2001 9/14/01

  • OTS Asks Thrifts to Assist Customers Affected by Terrorist Attacks

    The OTS announced steps thrifts can take to assist customers affected by events related to Tuesday's terrorist attacks in New York City and Washington, DC. OTS 01-60 9/13/01

  • OCC Encourages National Banks to Work With Customers Affected by Terrorist Attacks

    The OCC is encouraging national banks to work with customers affected by Tuesday's terrorist attacks in
    New York and Washington. OCC:NR 2001- 79 9/13/01

  • OTS Outlines Reasons for Superior Bank Failure and Suggests Remedies

    OTS Director Ellen Seidman detailed the history of the failed Superior Bank for the Senate Banking Committee. “I sincerely believe that this failure was the responsibility of those who owned and managed the institution and related parties,” Ms. Seidman said. However, she stressed that investigations into the failure are still underway by OTS, FDIC, Treasury Inspector General and the General Accounting Office. OTS 01-59 9/13/01

  • OTS Issued Eight Enforcement Orders in July

    The OTS reported that it issued eight enforcement orders to three individuals and four institutions and terminated three others during July. OTS 01-58 9/13/01

  • OCC Allows National Bank Offices Affected by Emergency to Close

    The OCC issued a proclamation allowing national bank offices affected by the emergency situation to close at their discretion. OCC:NR 2001-78 9/12/01

  • Federal Reserve System is open and operating.

    The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs. FRB Press Release 9/12/01

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on the Interamerica Bank, Albuquerque, New Mexico, are in circulation. FDIC:FIL-76-2001 9/11/01

  • OCC and ABA Co-Sponsor Community and Economic Development Conference

    The OCC and the ABA will co-sponsor the 2001 National Community and Economic Development Conference titled "Grow Markets....Grow Profits" in Baltimore, Maryland on September 17-19. OCC:NR 2001-77 9/11/01

  • NCUA Chief Tells Texas Credit Unions Agency's Streamlined Approach to Adopting Underserved Areas May Open Doors for Greater Expansion into Hispanic Communities

    The nation's federal credit unions have added over 18 million potential members in 2001 and NCUA's streamlined process has helped create this expansion says NCUA Acting Chairman Dennis Dollar. He says these additions will extend low-cost financial services to many underserved Americans and open additional doors for credit unions in “meeting member needs from all walks of life.” NCUA Press Release 9/10/01

  • OCC Issues Advisory Letter about obligations under the EFTA and Regulation E

    The OCC wishes to ensure that national banks fully comply with the EFTA's error resolution requirements and that they conduct adequate investigations of claims of unauthorized transactions. The purpose of this advisory letter is to assist banks in
    addressing the compliance and reputation risks of inadequate investigations under Regulation E. OCC:AL 2001-9 9/10/01

  • Sinclair National Bank Closed by the OCC and FDIC Appointed Receiver

    Sinclair National Bank, Gravette, Arkansas, was closed by the OCC and the FDIC was appointed receiver. FDIC:PR-63-2001 , OCC:NR 2001-76 9/10/01

  • Agricultural Loans Affected by the Drought Oregon and Northern California

    The FDIC is encouraging banks to work constructively with agricultural borrowers affected by the severe drought in the Klamath Basin of Southern Oregon and Northern California. FDIC:FIL-75-2001 9/10/01

  • Latest FDIC Survey Finds Some Weakening In Real Estate Markets

    The latest results of the FDIC's Survey of Real Estate Trends indicated somewhat weaker conditions in the nation's real estate markets, particularly for local offices. Although reports of stability continued to dominate, the survey results indicate some deterioration in real estate markets. FDIC: PR-62-2001 9/10/01

  • OCC Reports "More Normal" Derivatives Trading Revenue for Banks

    U.S. commercial banks earned $2.8 billion from cash instruments and derivatives activities in the second quarter of 2001, down from the $4.0 billion record revenue of the first quarter. The notional amount of derivatives in insured commercial bank portfolios increased by $3.9 trillion in the first quarter, to $47.8 trillion. OCC:NR 2001- 75 9/10/01

  • Thrift Industry Earnings Set Quarterly Record

    Thrift industry earnings rose sharply during the second quarter of 2001 to a record $2.5 billion, the OTS reported. OTS Director Ellen Seidman attributed the strong earnings to continued strength in the housing market coupled with low mortgage interest rates. OTS 01-57 9/7/01

  • FDIC Distributes HUD's 2001 Adjusted Median Family Income Figures

    The FDIC distributed the 2001 median family income figures developed by the Department of Housing and Urban Development (HUD) for each metropolitan statistical area (MSA) and the statewide portions of nonmetropolitan areas. FDIC:FIL-74-2001 9/6/01

  • Commercial Banks Earn Almost $20 Billion In Second Quarter, 2001

    Insured commercial banks earned $19.2 billion in the second quarter of 2001, the Federal Deposit Insurance Corporation announced. FDIC:PR-61-2001 9/6/01

  • FDIC Issues September List Of Banks Examined For CRA Compliance

    The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in June 2001. FDIC:PR-60-2001 9/6/01

  • OCC Issues Final Rule to Amend the Percentage of Capital and Surplus a Bank may Loan

    As earlier reported in the Federal Register, this final rule establishes a three-year pilot program that creates new
    special lending limits for 1-4 family residential real estate loans and loans to small businesses. Eligible national banks with main offices located in states that have a lending limit available for residential real estate, small business or unsecured loans that is higher than the current Federal limit may apply to take part in the pilot program. OCC 2001-42 9/6/01

  • OCC Issues Fourth Quarter 2001 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 2001. OCC:NR 2001- 74 9/6/01

  • FDIC Issues Fourth Quarter CRA Examination Schedule

    The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2001. FDIC:PR-59-2001 9/4/01

08/14/2001

Examination modernization webinar

The NCUA will host a free webinar, “NCUA Examination Modernization,” on Wednesday, January 22, 2014, at 2 p.m. ET. The webinar is open to credit unions of all asset sizes.

08/14/2001

JPMorgan admits BSA violations

FinCEN has distributed a news release announcing that it has fined JPMorgan Chase Bank, N.A., $461 million for willfully violating the Bank Secrecy Act (BSA) by failing to report suspicious transactions arising out of Bernard L. Madoff's decades-long, multi-billion dollar fraudulent investment scheme. "In consenting to the assessment of a civil money penalty, JPMorgan admitted to the facts set forth by FinCEN and that its conduct violated the Bank Secrecy Act," said the release. FinCEN said that the bank attempted to protect itself when it became suspicious of Madoff's fraud, but failed to file required Suspicious Activity Reports with FinCEN which might have "saved thousands of other fraud victims untold misery and loss." FinCEN's notice stated that the OCC will collect a $350 million payment under a Civil Money Penalty Order against JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, NA. The U.S. Attorney's Office for the Southern District of New York (SDNY) has approved a deferred prosecution agreement under which JPMorgan will forfeit $1.7 billion (which will be contributed to the recovery funds for Madoff victims). FinCEN agreed to consider its penalty satisfied by JPMorgan's payment to the SDNY. The combined payments agreed to by the JPMorgan banks total $2.05 billion.


08/14/2001

NCUA insurance coverage estimator improved

The NCUA has announced the release of the Share Insurance Estimator, a new, improved insurance coverage estimator which replaces the NCUA E-Calculator.

08/14/2001

NMLS Ombudsman meeting announced

An open meeting with the NMLS Ombudsman will be held on Tuesday, February 18, 2014, from 2:00 to 5:00 p.m. ET, prior to the NMLS Annual Conference in Miami, Florida. Conference registration is not required to attend the meeting. The meeting will be in-person only; there will be no dial-in available.

08/14/2001

OFAC designation

OFAC has announced the designation of a citizen of Afghanistan as a SDGT and the addition of his name to the SDN List. Information regarding the designation has been posted in a BOL OFAC Update.

08/14/2001

JPMorgan admits BSA violations

FinCEN has distributed a news release announcing that it has fined JPMorgan Chase Bank, N.A., $461 million for willfully violating the Bank Secrecy Act (BSA) by failing to report suspicious transactions arising out of Bernard L. Madoff's decades-long, multi-billion dollar fraudulent investment scheme. "In consenting to the assessment of a civil money penalty, JPMorgan admitted to the facts set forth by FinCEN and that its conduct violated the Bank Secrecy Act," said the release. FinCEN said that the bank attempted to protect itself when it became suspicious of Madoff's fraud, but failed to file required Suspicious Activity Reports with FinCEN which might have "saved thousands of other fraud victims untold misery and loss." FinCEN's notice stated that the OCC will collect a $350 million payment under a Civil Money Penalty Order against JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, NA. The U.S. Attorney's Office for the Southern District of New York (SDNY) has approved a deferred prosecution agreement under which JPMorgan will forfeit $1.7 billion (which will be contributed to the recovery funds for Madoff victims). FinCEN agreed to consider its penalty satisfied by JPMorgan's payment to the SDNY. The combined payments agreed to by the JPMorgan banks total $2.05 billion.


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