Regulators issued a $5 million penalty on Monday against Pamrapo Savings Bank SLA for Bank Secrecy Act violations.
The Justice Department, the Office of Thrift Supervision and the Financial Crimes Enforcement Network issued the fine against the $558.5 million-asset thrift for "ineffective" anti-money-laundering programs.
The thrift pled guilty in the U.S. District Court for the District of New Jersey to conspiracy to violate the BSA. According to the Justice Department, the thrift admitted that it willfully violated the anti-money-laundering law to avoid the expenses associated with compliance.
The thrift failed to file currency transaction reports and suspicious activity reports on approximately $35 million in illegal and suspicious financial transactions, the Justice Department said.
The thrift also said in court that it made false and misleading statements to bank regulators, including the OTS, to prevent regulatory oversight and enforcement of its BSA compliance programs.