The Federal Deposit Insurance Corp. took action against eight companies and lifted orders against eleven banks in December, according to its latest monthly roundup of enforcement actions.
Banesco USA in Coral Gables, Fla., was hit with a consent order for weaknesses in Bank Secrecy Act compliance. The $820 million-asset company was ordered to review its customer identification and customer due diligence programs, increase board participation and assess its vulnerability to money laundering and financial terrorism. Banesco, which is a division of Banesco International Financial Group in Venezuela, was also ordered to review all transactions between March 31, 2012, and the date of the order, which was issued on Dec. 5.
The FDIC issued a consent order in conjunction with the Office of the Comptroller of the Currency against bank vendors BSERV in Las Vegas and Fundtech in Jersey City, N.J. The companies were ordered to assess information security risk, increase board oversight and create a vendor management program that meets regulatory requirements.
A consent order against The Necedah Bank in Necedah, Wis., requires the $31.7 million-asset firm to improve compliance with consumer laws and increase board oversight.
The FDIC issued a prompt corrective action to the critically undercapitalized The Bank of Union in El Reno, Okla., which failed in late January. Its $225.5 million in assets and $328.8 million in deposits were sold to BankFirst (BANF) in Oklahoma City.
An amended consent order against State Central Bank in Keokuk, Iowa, requires the $71.4 million-asset bank to maintain a minimum 10% Tier 1 capital ratio and 14% total risk-based capital ratio.
Valley Bank in Fort Lauderdale, Fla., was issued a consent order for weaknesses related to management. The $88.3 million asset-bank is required to develop a conflict-of-interest policy, clean up its loan portfolio and maintain a minimum 9% Tier 1 leverage ratio and 12% total risk-based capital ratio.
The $63.5 million-asset Vantage Point Bank in Horsham, Pa., was ordered to address deficiencies in management and boost capital and earnings. The company was also prohibited from expanding its mortgage banking division until it addresses problems with risk management, compliance and information technology.
Meanwhile, the FDIC ended a prompt corrective action against First Carolina State Bank in Rocky Mount, N.C. The action, issued in January 2012, ordered the $85.9 million-asset bank to raise capital or make plans to sell itself or merge with another bank. First Carolina had a 9.56% Tier 1 leverage ratio and a 15.06% total risk-based capital ratio as of Dec. 30.
Ten other banks were released from enforcement actions: BankCherokee in St. Paul, Minn.; Falcon International Bank in Laredo, Texas; Sanibel Captiva Community Bank in Sanibel, Fla.; Security Savings Bank in Southport, N.C.; Woodland Bank in Deer River, Minn.; Peoples Bank in Clifton, Tenn.; Farmers State Bank of Sublette in Sublette, Ill.; Valley Bank in Fort Lauderdale, Fla.; Cambridge State Bank in Cambridge, Wis.; and North Community Bank in Chicago, Ill.