ALBANY, N.Y. – Two small credit unions agreed on cease and desist orders with the New York Banking Department over violations of the Bank Secrecy Act and other regulatory issues. Niagara Frontier Federal Employees CU, a $3 million Niagara Falls credit union, was cited for non-compliance with federal and state anti-money laundering laws and rules, including the Bank Secrecy Act; as well as poor accounting, inadequate board and committee oversight and inadequate internal controls. And $5 million Niagara Falls Penn Central Employees CU was also cited for BSA violations, and inadequate controls, allowance for loan losses and asset/liability management. Both credit unions agreed to regulatory orders that require them to correct the violations.
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