FDIC Consent Order with NY Bank for AML/CFT Deficiencies

Recently, a New York-based bank agreed to a consent order (under which the bank neither admits nor denies the allegations) with the FDIC to improve the bank’s Anti-Money Laundering/Countering the Financing of Terrorism Program (AML/CFT Program).  The consent order addresses certain deficiencies in the bank’s AML/CFT Program identified by the FDIC in a 2022 AML/CFT Target Review.

The consent order requires the bank’s board of directors to assume full responsibility for the development, approval, and implementation of new AML/CFT policies and procedures.

Moreover, the consent order (among other things) requires the bank to:

• ensure its written AML/CFT Program is reasonably designed to monitor compliance with the Bank Secrecy Act;
• prepare an AML/CFT risk assessment within 90 days;
• ensure it has a system of AML/CFT internal controls within 180 days;
• develop policies, procedures, and processes for AML/CFT Independent Testing Procedures within 120 days;
• ensure it has appropriate individuals with qualifications commensurate with the AML/CFT risk assessment; and
• train appropriate personnel in all relevant aspects of the Bank Secrecy Act and AML/CFT programs.