OCC issues C&D against Bank of China branch over BSA/AML, assesses $12.5 million penalty

The New York branch of the Bank of China was cited for Bank Secrecy Act/anti-money laundering (BSA/AML) deficiencies and assessed a $12.5 million civil money penalty (CMP) in enforcement orders disclosed Friday by the Office of the Comptroller of the Currency (OCC).

These actions were executed under cease-and-desist (C&D) and CMP orders (both consent orders) this April and disclosed in the OCC’s June list of enforcement orders released Friday. That list also includes termination of a previous order against the bank over safety-and-soundness issues.

Another C&D order targets Stacy Folkers, Barrington Bank & Trust Company, National Association, Barrington, Ill. The consent order alleges that Folkers, while a residential loan originator at Barrington Bank & Trust, sent records of existing or prospective bank customers to a competing institution where she had accepted a position. Folkers was also assessed a $7,500 civil money penalty.

In other consent orders, the OCC barred three individuals who previously worked for banks in Delaware, and two in Nebraska, from future participation in the affairs of a federally insured financial institution. One of those individuals – Justin D. Schwartz, formerly of Nebraskaland National Bank (North Platte, Neb.) – was also assessed a $10,000 penalty.

OCC Enforcement Actions and Terminations for June 2018