A Florida regional bank on Thursday agreed to pay the U.S. Treasury Department $6.5 million to resolve allegations that long-term deficiencies in its compliance program helped facilitate a $1.2 billion Ponzi scheme. In separate civil monetary penalties, the Financial Crimes Enforcement Network (FinCEN) and Office of the Comptroller of the Currency (OCC) said that Gibraltar Private Bank & Trust failed to properly report as much as $558 million in suspicious transactions from 2009 to 2013, including transfers linked to former Florida attorney Scott Rothstein, who is serving a 50-year prison sentence for defrauding thousands of investors. "Incomplete and inaccurate" data...
The vast majority of transfers flagged as suspicious by transactional monitoring systems are eventually cleared as false positives, racking up compliance costs for financial institutions and undermining their ability to identify illegal money flows, say sources.
Plaintiffs suing Toronto Dominion Bank over its ties to a convicted Ponzi schemer will likely reject a proposed comprehensive settlement that would grant the institution immunity from future litigation, say attorneys.
Federal financial regulators are questioning TD Bank about potential Bank Secrecy Act compliance lapses identified in the wake of the conviction of Florida-based Ponzi schemer Scott Rothstein, say sources.