The Financial Crimes Enforcement Network has hit two banks with fines under the Bank Secrecy Act.
California's Sacramento First National Bank paid a civil money penalty of $20,000 for not filing currency transaction reports. Between 1987 and 1992, the bank failed to file the reports on four customers who transferred money and cashed checks through the bank.
The Sacramento bank has since been acquired by Business and Professional Bank, Woodland, which has agreed to cooperate with a full-scale Bank Secrecy Act exam by its regulator this year.
The Metropolitan Bank and Trust Co., Agana, Guam, was fined $6,000 for failure to file transaction reports during 1986 and 1987.
According to the Financial Crimes Enforcement Network, there was no evidence of criminal activity by either bank.
Still, Stanley E. Morris, director of the Treasury Department agency, said Bank Secrecy Act enforcement is its first line of defense against money laundering.
"Weaknesses in BSA compliance and failures to report currency transactions, whatever their cause, potentially deprive Treasury of financial information which is a vital weapon against money launderers," Mr. Morris said.