WASHINGTON-The Financial Crimes Enforcement Network and the Office of Thrift Supervision recently announced that each agency placed a hefty fine on BankAtlantic of Fort Lauderdale, Fla. for Bank Secrecy Act violations.

A $10 million fine has been levied against the financial institution for what FinCEN and OTS called systemic defects they found in BankAtlantic's anti-money laundering program that resulted in the failure to timely file suspicious activity reports. "This case, which involved tens of millions of dollars in unreported suspicious financial transactions, including more than $10 million in suspected drug proceeds, is an example of serious and systemic violations of BSA requirements," FinCEN Director Robert W. Werner stated. "The actions taken today highlight how consequential it is for banks to have an effective anti-money laundering program in place to ensure that the financial system is not used to facilitate criminal activity."

FinCEN and OTS' accompanying Cease and Desist Orders against BankAtlantic required certain corrective actions. Without admitting or denying fault in the allegations, the institution consented to the penalty and the orders from the agencies.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.