The Federal Deposit Insurance Corp. and Illinois state regulators announced that they have given the $1.9 billion-asset West Suburban Bank an enforcement order concerning anti-money-laundering violations.
The Dec. 2 cease-and-desist order released Friday against the Lombard, Ill., bank did not include a fine but did order the bank to beef up its Bank Secrecy Act program.
The order criticized the bank for its supervision of BSA rules, its ineffective system of internal controls, inadequate independent testing, record keeping, and management practices related to BSA rules.
The federal and state regulators ordered the bank to develop a written BSA compliance program within 60 days.
This program must include improved independent testing, risk assessment, BSA due diligence guidelines, money service businesses' due diligence guidelines, and effective training of personnel.
The order also called for a "look back" review of transactions from April 17, 2006, through Dec. 2, 2007. And the banking company must establish an account monitoring system for accounts with unusual changes in balances or activity.
The bank agreed to the order without admitting or denying the charges.
