WV bank fined for flood insurance compliance infractions

A $14,000 fine for violations of flood insurance requirements has been levied against a West Virginia bank by the Federal Reserve.

Clear Mountain Bank of Bruceton Mills, W. Va., (assets: $581 million) was assessed the civil money penalty by the Federal Reserve for violations of Regulation H, which implements the National Flood Insurance Program (NFIP). According to the Fed, in a release Thursday, the fine was levied in connection with the bank’s “pattern or practice of violations” with the regulation.

Under the rule, the penalty is payable to the NFIP; the Fed then remits payment to the Federal Emergency Management Agency, Federal Insurance and Mitigation Administration for deposit into the National Flood Mitigation Fund.

Federal Reserve Board issues enforcement action with Clear Mountain Bank