On November 1, the Financial Crimes Enforcement Network (FinCEN) announced that it had assessed a $2 million civil money penalty against a Texas bank for “willfully violating” the Bank Secrecy Act (BSA). According to FinCEN, the bank failed to comply with the specific due diligence requirements for correspondent banking relationships as required by section 312 of the USA PATRIOT ACT. In particular, FinCEN found that the bank failed to ask appropriate due diligence questions in connection with the foreign bank account relationship and did not verify the accuracy of responses to questions it did pose. FinCEN further found that the bank did not appropriately establish specific customer risk profiles and assign proper risk ratings, resulting in a failure to identify, review, and escalate potential anti-money laundering (AML) violations.
In 2015, the bank previously resolved alleged BSA/AML deficiencies identified by the OCC and agreed to pay a $1 million civil money penalty. The bank’s payment of the $1 million OCC penalty is credited to the FinCEN penalty. FinCEN also acknowledged the considerable resources the bank invested in its BSA compliance operations and customer due diligence processes.