The Florida Office of Financial Regulation discovered 15 practices at Eastern Financial Florida Credit Union that either needed immediate attention or complete overhauls.According to the March 19 cease and desist order, they are:Operating without effective leadership oversight executive management supervision and direction from the board of directors to prevent unsafe and unsound practices and violations of laws rules regulations and guidance;Operating without adequate core deposits to ensure it can meet its funding obligations as they become due without the mandatory use of borrowed funds to achieve and maintain the necessary liquidity under all circumstances;Operating without a specifically described and effective capital maintenance plan;Operating without adequate polices procedures and internal routines and controls regarding capital liquidity earnings and lending;Operating without adequate loan underwriting standards or a loan review program that would ensure sound loan underwriting risk assessment and risk management;Operating with an excessive level of adversely classified assets;Operating without adequate policies to properly fund the allowance for loan and lease loss account;Operating with an excessive level of concentrations in the member business loan portfolio;Operating in violation of federal and state laws rules regulations and guidance concerning financial institutions;Operating without adequate oversight by the CU’s board of directors and supervision by executive management to prevent violations of the Bank Secrecy Act and anti-money laundering requirements;Operating without an effective system of internal controls to ensure ongoing compliance with BSA/AML requirements;Operating without an effective system of independent testing for compliance with BSA/AML requirements;Operating without an adequate BSA/AML requirements program for the appropriate personnel;Operating without an effective customer identification and verification system that complies with section 102.13 of the rules and regulations of the Department of the Treasury;Operating without an adequate system for detecting and reporting suspicious activity.–[email protected]

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.