The Federal Deposit Insurance Corp. issued five corrective actions and three money penalties in June, according to the agency's monthly roundup of regulatory actions.
The agency targeted three banks for having weak anti-money laundering controls. Millville Savings and Loan Association in Millville, N.J., which has $149 million in assets, was directed to revise its policies for complying with regulations related to the Bank Secrecy Act. It was also ordered to develop an internal audit program.
The additional two consent orders related to the BSA were previously disclosed in regulatory filings. The banking unit of Discover Financial Services, based in Greenwood, Del., agreed to strengthen its systems for monitoring compliance with anti-laundering regulations. The $78 billion-asset Discover Bank also agreed to designate an officer to manage risk assessment and employee training.
A consent order against Bancorp Bank in Wilmington, Del., was also disclosed in June. The $4.7 billion-asset bank agreed to establish procedures regarding the safety of prepaid and credit card programs. It was also required to hire an independent party to assess its system for categorizing merchants.
Additionally, the FDIC required Columbia Savings and Loan Association in Milwaukee, Wis., to maintain a Tier 1 capital ratio of 9% and a total risk-based capital ratio of 13%. The agency also prohibited the $23 million-asset bank from increasing its assets by more than 4% without submitting a growth plan.
Valley Bank and Trust in Brighton, Colo., was ordered to maintain a Tier 1 leverage capital ratio of 8% or higher, as well as a risk-based capital ratio of more than 10%. The $275 million-asset bank was also prohibited from issuing dividends or entering into new lines of business. The FDIC also ordered the bank to charge off assets designated as a loss.
The FDIC issued a $70,000 civil money penalty against the $347 million-asset International Finance Bank in Miami, Fla., for misrepresenting interest rates on deposit-secured loans in its advertising materials.
First United Security Bank in Thomasville, Ala., was ordered to pay $40,000 for misstating customer requirements for identity theft insurance. First Security has $576 million in assets.
The $438 million-asset Finance Factors in Honolulu, Hawaii was fined $11,165 for violations related to flood insurance.
Consent orders were terminated for the following banks: Rabun County Bank in Clayton, Ga.; One World Bank in Dallas, Texas; First Personal Bank in Orland Park, Ill.; Bay Bank in Green Bay, Wisc.; Flagship Bank in Wayzata, Minn.; Kendall State Bank in Valley Falls, Kan.; Alliance Bank Central Texas in Waco; Chinatrust Bank in Torrance, Calif.; Valley Bank and Trust; Monroe Bank & Trust in Monroe, Mich.
A prompt corrective action was terminated for AztecAmerica Bank in Berwyn, Ill.
The FDIC also terminated insurance at Mount Gilead Savings and Loan Association in North Carolina because it does not receive deposits.