The Bancorp in Delaware Hit with BSA-Related Consent Order
Share of The Bancorp (TBBK) plummeted a day after the Wilmington, Del., company disclosed that it had been hit with a consent order tied to the Bank Secrecy Act.
The $4.7 billion-asset company said in a regulatory filing Tuesday that the Federal Deposit Insurance Corp. had found weaknesses in its existing compliance program. The order requires its bank to revise its program and implement additional policies and procedures for suspicious activity monitoring and reporting. The company must also review past account activity to determine whether suspicious activity was properly identified and reported and establish an independent testing program.
The Bancorp said it has already increased training and complied with a mandate to hire an officer dedicated to overseeing Bank Secrecy Act initiatives, among other things. "Although these measures have and will increase noninterest expense including significant initial consulting fees, growth in the various lines of business should over time, should cover these expenses," the filing said.
The order bars the company from signing new independent sales organizations and issuing new non-benefit related reloadable prepaid card programs. The Bancorp is also restricted from originating automated clearing house transactions for new merchant-related payments.
The company's stock fell nearly 30% as of mid-afternoon trading.