The Federal Reserve and state regulators in New York and Florida last week issued a cease-and-desist order against Banco Industrial de Venezuela.
Under the order, announced Friday, the Caracas company, including its offices in Miami and New York, cannot make new loans or take on new clients without regulatory approval. The company also must improve oversight, internal and operational controls, asset quality, investment securities procedures and internal audit.
The company, which lacks audited financial statements and was already subject to a July 2006 written agreement, was ordered to pay a $1.8 million penalty
Banco Industrial was subject to an intervention by the Venezuelan government in May 2009. The intervention, a form of conservatorship, was lifted in January.