Bank of Mingo in Williamson, W.Va., will pay a total of $4.5 million in fines and legal settlements after it was investigated for violating anti-money-laundering laws.
The penalties were assessed by a group of federal prosecutors and regulators. The Federal Deposit Insurance Corp. fined Bank of Mingo $3.5 million for AML and Bank Secrecy Act violations. The Financial Crimes Enforcement Network assessed $4.5 million in civil money penalties on the bank. Finally, the bank reached a settlement with the Justice Department to forfeit $2.2 million in assets.
The $4.5 million Fincen penalty will be offset by the FDIC's $3.5 million assessment. Both are offset by the $2.2 million forfeiture with the Justice Department. The $2.2 million forfeiture will be paid to the Justice Department and the $2.3 million in penalties will be paid to the Treasury Department.
The $96 million-asset bank failed to implement an effective AML/BSA compliance program over "an extended period of time," the FDIC said. Bank of Mingo also "failed to file multiple currency transaction reports and suspicious activity reports associated with this risk," the FDIC said in a news release.