WASHINGTON–Washington Mutual, the nation's largest thrift, has been slapped with a cease and desist order by the Office of Thrift Supervision for Bank Secrecy Act violations.
The C&D, to which WaMu did not admit or deny fault, does not levy any fines but outlines the steps the thrift must take to get back in the OTS' good graces. Under the stipulations, WaMu must submit an acceptable written plan to OTS to ensure against future violations and it must be fully implemented by March 31, 2008. The plan must strengthen internal controls and independent testing as well as provide adequate resources to the BSA officer.
Additionally, a compliance committee must be established to report progress to WaMu's full board on a regular basis. The progress reports will be shared with OTS.
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Banks have been hit with multi-million dollar fines in recent years for BSA violations as regulators crack down. Credit unions have not been fined for BSA violations in the last few years but a couple enforcement actions have been taken as well as informal steps. The regulatory burden of BSA compliance has been a primary complaint of financial institutions as regulatory enforcement efforts have ramped up.
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