keep reading. Make sure that new products or services that are in the pipeline,
are being considered for continual monitoring and are being included in the BSA/
AML risk assessment.
4. The larger an institution becomes,
the more difficult it can be to make sure
everyone is on the same page, and good
communication can be even more chal-
lenging. Keep these issues in the back
of your mind as you review these docu-
ments, and make sure when you reflect
upon other organizations’ issues, ask
yourself “Could these happen here?” Take
stock of programs to make certain that
something similar isn’t percolating under
the surface of a seemingly fit BSA/AML
program. Obviously, some programs
were documented as being fine at one
time, and then internal audit missed
signs, or training wasn’t adequate, or staff
wasn’t qualified. Core pillar violations
that were repeatedly pointed out and not
addressed adequately or at all, will not be
tolerated by the regulators, but when re-
ferrals to FinCEN are not optional, banks
should beware.
BSA/AML Enforcement Actions
A quick look at some of the enforcement actions gives a look into things to
ponder:
1. September 2013—Saddle River Valley
Bank in Saddle River, New Jersey: 1
This bank was cited for processing $1.5
billion in suspicious transactions related
to Mexican and Dominican Republic ca-
sas de cambio and foreign correspondent
accounts. This bank had only 2 branches
and $118 million in assets. Combined civ-
il money penalties between the Office of
the Comptroller of the Currency (OCC)
and the U.S. Attorney’s Office were $8.2
million. The bank no longer exists. This is
an extreme case, but one worth reviewing
because of the extreme outcome.
2. September 2013—TD Bank: 2
With over 1,300 locations domestically
located and over $216 billion in assets,
the bank was fined a total of $90 million
by FinCEN, the OCC and the Securities
Exchange Commission for failing to detect and report a massive Ponzi scheme
that involved IOLTA accounts held and
managed by an attorney in Florida.
Transactions in question were conducted
with an approximate value of $4 billion S H U T
TE
R
STO
CK
We must learn from their mistakes and take to heart the valuable details
the regulators leave in the documents. These details are made public for a reason––
partly to chastise, and partly to inform and warn.
