On February 15, a national bank and its parent corporation were assessed $613 million in total penalties by the OCC, DOJ, Federal Reserve, and Financial Crimes Enforcement Network (FinCEN) as part of a deferred prosecution agreement over Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance program deficiencies. According to the announcement by the DOJ, the agency’s settlements cover a range of alleged AML deficiencies back to 2009, including an alleged effort not to disclose known Suspicious Activity Report (SAR) deficiencies to the OCC. Additionally, the DOJ cited the bank for failing to timely file SARs related to the banking activity of a customer who used the bank to launder proceeds from a fraudulent payday lending scheme, when the bank was allegedly on notice of the activity (previously covered by InfoBytes here).

The $613 million in penalties include: a $453 million forfeiture as part of the deferred prosecution agreement with the DOJ; a $75 civil money penalty from the OCC; a $15 million civil money penalty from the Federal Reserve; and a $70 million civil money penalty from FinCEN.