Taking federal bailout money can come with a lot of strings attached: public relations strings, capital oversight strings and, surprisingly, anti-money laundering compliance strings. That's what Scottsdale, AZ-based Goldwater Bank discovered when the institution found itself the subject of a letter by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The bank agreed on Sept. 15 to pay more than $730,000 to the FBI and SIGTARP for helping a company process online gambling payments. In addition to the fine, the bank agreed to improve its anti-money laundering (AML) program, including its training and internal...
An Arizona bank that received TARP funds enters into a settlement agreement with the DOJ for AML violations, the OCC signs consent orders with two different banks for BSA deficiencies and more, in this week's roundup.
U.S. investigators arrested the former chief executive officer of a Manhattan-based bank Monday for allegedly embezzling money from a fraudulent loan and attempting to cheat the government out of federal bailout funds.
Financial institutions should practice special due diligence in dealing with funds distributed under the Troubled Asset Relief Program because they may be used to launder money and perpetrate fraud, according to a Financial Crimes Enforcement Network advisory issued Wednesday.
A government watchdog's call for stronger anti-money laundering controls on a federal bank bailout program could result in a "significant step up" in compliance duties for companies involved, say consultants.