ALEXANDRIA, Va. -- Garden Savings Federal Credit Union hasagreed to a Cease & Desist Order from NCUA, without admittingor denying fault, for Bank Secrecy Act noncompliance, theregulatory item credit unions often cite as the most onerous.

The administrative order, unanimously approved by the NCUA BoardJuly 3, states that the credit union has agreed to contract anoutside audit firm within 60 days of the order, signed June 25 bymost of the credit union's board, to correct deficiencies; completea risk assessment; keep a list of high and moderate risk members;file all missing Currency Transaction Reports and SuspiciousActivity Reports as well as the back CTRs for improperly exemptedbusinesses within 30 days; establish written high-risk memberpolicies and procedures within 90 days; hire a "competent,full-time" BSA compliance officer and approve a job description forthe BSA officer within 90 days; ensure necessary training of theBSA officer; obtain and research all FinCEN 314(a) informationsharing within 14 days of the request; establish a training programwithin 90 days; implement and maintain adequate internal controls;and ensure Office of

Foreign Assets Control compliance, among many otherrequirements.

Garden Savings CEO Louis Vetere declined to comment beyond thecredit union's official statement. "We have agreed to the issuanceof a Consent Cease and Desist Order by NCUA, without admitting thatany grounds exist for its issuance," it read. "This Order is theresult of various deficiencies in our Bank Secrecy Act/Anti-MoneyLaundering Compliance programs that were brought to light duringNCUA's review of our 2006 operations. We intend to fully complywith the Order and have taken proactive steps to correct thedeficiencies that were found. We have already made several changesto our operations and today we are over 80% compliant with thedirectives in the Order. We are continuing to correct theremaining

deficiencies in our operations and will be 100% compliant

with each of the directives in the order within the time-

frames specified."

Just last year the former CEO of Garden Savings, Douglas Wild,agreed to a prohibition order without admitting or denying fault toavoid litigation.

Garden Savings Federal Credit Union was chartered in 1968 andnow serves approximately 15,500 members in Parsippany, Whippany andNewark, New Jersey. Credit union service has continueduninterrupted and member funds are federally insured up to at least$100,000 by the National Credit Union Share Insurance Fund.

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