Regulatory Alerts2006-10-31 | 2006-07Added
Assessment of Civil Money Penalty Against Israel Discount Bank of New York
The Financial Crimes Enforcement Network assesses a civil money penalty of $12,000,000 against Israel Discount Bank of New York for violations of the Bank Secrecy Act. The penalty resolves deficiencies in the bank's anti-money laundering program, including inadequate internal controls, insufficient independent testing, understaffed compliance functions, and failures regarding due diligence for correspondent accounts. Additionally, the bank failed to timely file approximately one hundred suspicious activity reports involving $1.4 billion in transactions and submitted incomplete or inaccurate reports. The penalty is satisfied by a single payment split equally, with $6,000,000 paid to the Department of the Treasury and $6,000,000 to the New York State Banking Department.