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Financial Services Law Insights and Observations

FDIC fines banks for TCPA, BSA violations; releases March enforcement actions

Federal Issues FDIC Enforcement TCPA Bank Secrecy Act

Federal Issues

On April 26, the FDIC announced a list of administrative enforcement actions taken against banks and individuals in March. The 13 orders include “three consent orders; two orders terminating consent orders; four Section 19 orders; one removal and prohibition order; two voluntary terminations of insurance orders; and two orders to pay civil money penalty.” The FDIC assessed, among other things, a $200,000 civil money penalty against an Oklahoma-based bank for allegedly violating the FTC Act and the TCPA by (i) using telemarketers who misrepresented themselves as employees or affiliates of the federal government; and (ii) placing calls to consumers who appeared on the National Do Not Call Registry or who requested to be added to the bank’s internal Do Not Call List.

The FDIC also assessed a consent order against an Illinois-based bank related to alleged weaknesses in its Bank Secrecy Act (BSA) compliance program. Among other things, the bank is ordered to (i) designate a senior official to enforce and take corrective action related to its BSA compliance policy; (ii) implement a revised, comprehensive written BSA compliance program and system of internal controls to address provisions, including currency transaction reporting, customer identification program, beneficial ownership, and information sharing requirements; (iii) adopt a written Customer Due Diligence Program to assure the reasonable detection of suspicious activity, specifically for money services businesses and privately-owned ATM customers; (iv) implement a process for account transaction monitoring; (v) implement a comprehensive BSA training program for appropriate personnel; (vi) conduct a look back review to ensure certain transactions were appropriately identified and reported; and (vii) revise its internal control programs to correct the identified deficiencies.

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