FROM: FEDERAL DEPOSIT INSURANCE CORPORATION
June 15, 2015
The Federal Deposit Insurance Corporation (FDIC) announced the assessment of civil money penalties of $3.5 million against Bank of Mingo, Williamson, West Virginia, for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws and regulations.
In a concurrent action, the Financial Crimes Enforcement Network (FinCEN) assessed civil money penalties of $4.5 million. Bank of Mingo also settled criminal charges, on related activities, brought by the U.S. Department of Justice, U.S. Attorney's Office for the Southern District of West Virginia, in a deferred prosecution agreement providing for $2.2 million in asset forfeiture against the institution. FinCEN's $4.5 million civil money penalty is offset by the FDIC's $3.5 million assessment and both are offset by the $2.2 million asset forfeiture. The $2.2 million asset forfeiture will be paid to the Department of Justice, and the remaining $2.3 million in penalties will be paid to the United States Treasury.
In taking this action, the FDIC determined that the bank failed to implement an effective BSA/AML Compliance Program over an extended period of time. The inadequate internal controls environment resulted in unacceptable risk to the institution in terms of illicit financial transactions. Furthermore, the institution failed to file multiple currency transaction reports and suspicious activity reports associated with this risk.
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