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OCC Announces March 2017 Enforcement Actions
On April 20, the Office of the Comptroller of the Currency (OCC) released a list of enforcement actions taken against national banks, federal savings associations, and former institution-affiliated parties in March. The actions include orders for civil money penalties (CMPs), restitution, and prohibition. Among the actions, a California bank was fined $58,000 for violations of the Flood Disaster Protection Act, as well as the former Chairman, CEO, and President of a Wisconsin bank was banned from banking and ordered to pay a CMP of $100,000 and $1.6 million in restitution due to breaches of fiduciary duty and unsafe or unsound practices involving bank-paid personal expenses and excessive compensation.
FDIC Releases List of Enforcement Actions Taken Against Banks and Individuals in February 2017
On March 31, the FDIC released its list of administrative enforcement actions taken against banks and individuals in February. Several of the consent agreements included on the list seek civil money penalties for, among other things, violations of the Flood Disaster Protection Act of 1973 and its flood insurance requirements. Other violations cited in the enforcement actions relate to unsafe or unsound banking practices, breaches of fiduciary duty, and violations of the Bank Secrecy Act. There are no administrative hearings scheduled for April 2017. The FDIC database containing all of its enforcement decisions and orders may be accessed here.
FDIC Announces 22 January 2017 Enforcement Actions
On February 24, the FDIC released its list of administrative enforcement actions taken against banks and individuals in January. Several of the consent agreements included on the list seek the payment of civil money penalties for, among other things, violations of the Flood Disaster Protection Act of 1973 and its flood insurance requirements. Other violations cited in the enforcement actions relate to unsafe or unsound banking practices and breaches of fiduciary duty. The FDIC database containing all of its enforcement decisions and orders may be accessed here.
Federal Regulators Clarify Effective Dates for Flood Insurance Amendments
On March 29, the Federal Reserve Board, the FDIC, the OCC, the NCUA, and the Farm Credit Administration issued an interagency statement to clarify the effective dates for changes to the Flood Disaster Protection Act enacted last year in the Biggert-Water Flood Insurance Reform Act (the Act). The statement informs financial institutions that the force-placed aspects of the Act became effective upon enactment, which was July, 6, 2012, while provisions related to private flood insurance and escrow of flood insurance payments do not take effect until the agencies issue regulations. The statement reiterates the OCC’s prior statement that the new flood insurance penalty provisions in the Act took effect immediately and apply to violations that occurred on or after July 6, 2012.