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FDIC Orders Two Banks to Improve Due Diligence and Training
printThe Federal Depositors Insurance Corp. issued cease-and-desist orders against two banks in November over lax due diligence in their anti-money laundering programs, the agency said Monday. The federal regulator, which insures nearly 8,000 banks, said it had issued the enforcement actions to Blue Ridge Savings Bank and Mountain Commerce Bank because the institutions had failed to closely look at higher risk customers and accounts, inadequately train employees and file suspicious activity reports in a timely manner. As part of its order, Erwin, Tennessee-based Mountain Commerce must hire a consultant to review the anti-money laundering (AML) knowledge of all "senior staff,"...
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