Florida Bank Cited For Violations

EmploymentCrossing Federal regulators agreed to a consent order with Miamis Intercredit Bank after reports cited it for violating banking laws, according to the South Florida Business Journal. This is the banks third regulatory order since April 2007, including an $8,400 fine related to its lending practices in June. The September 9th consent order, which the bank agreed to without admitting or denying wrongdoing, deals primarily with the Bank Secrecy Act. The bank was given timelines ranging from 30 days to 120 days to improve its compliance with rules such as verifying the identity of customers, screening for suspicious customers and transactions and keeping proper records of those activities. Intercredit Bank agreed with the Comptroller of the Currency of the United States to form a compliance committee with three directors, only one of them a bank employee or shareholder. This committee will oversee the banks compliance, including monitoring large cash transactions, offshore transactions and detailing its policy for when it wont allow people to open an account. Intercredit Bank must also hire a Bank Secrecy Act compliance officer, who is subject to approval by federal regulators. The consent order told Intercredit Bank it must take all necessary steps to ensure that bank management corrects each violation of law, rule or regulation cited in the Report of Examination and in any subsequent Report of Examination. These reports are not open to the public. Three orders in 18 months, or one every six months, is really unusual and not indicative of good regulatory relations, which is more important than ever during these turbulent times, Miami-based banking analyst Kenneth H. Thomas told the Journal.

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