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Watchdog Office Asks FDIC to Tighten Review of AML Violators
By Colby Adams
printThe U.S. insurer of federal banks should reconsider how it treats recidivist financial institutions and harmonize how regional examiners monitor for Bank Secrecy Act violations, a governmental watchdog said. In an audit, the U.S. Treasury Department's inspector general found that the Federal Deposit Insurance Corp. (FDIC) did not always adequately follow up with penalized financial institutions. Four of 15 banks cited for anti-money laundering infractions and reviewed for the study may have deserved "stronger or earlier supervisory action," the watchdog office said. "Although FDIC management provided a rationale for the supervisory approach applied in these cases, promptly issuing formal enforcement...
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