FDIC, FinCEN, NYDFS Assess Penalties Against Bank for BSA/AML Violations

The FDIC, FinCEN, and the New York Department of Financial Services (NYDFS) all recently assessed civil money penalties against a bank headquartered in New York (the Bank) related to alleged violations of the Bank Secrecy Act (BSA), and federal and state anti-money laundering (AML) regulations.

The Bank entered into this consent agreement with the FDIC related to alleged BSA violations and alleged failure to timely comply with a prior FDIC consent order from 2017, which was amended and restated in 2022.  The FDIC assessed a $5 million civil monetary penalty concurrently with FinCEN assessing a $15 million civil money penalty against the Bank.

The NYDFS assessed a separate $10 million civil monetary penalty through a consent order against the Bank for alleged state AML violations.  The consent order also requires that the Bank provide a detailed action plan regarding how it will remediate its alleged BSA/AML deficiencies.