FDIC October enforcements included penalties over fiduciary duty, flood insurance violations

Two penalties were assessed in October by the federal bank deposit insurer related to findings of fiduciary duty violations and violations of federal flood insurance rules, according to information released recently on the agency’s October enforcement actions.

The Federal Deposit Insurance Corp. (FDIC) said it issued eight orders and two notices in October, including one consent order, one order to pay a civil money penalty, one section 19 order, one removal order, two orders terminating consent or cease and desist orders, two orders modifying removal orders, one notice of assessment, and one notice of charges.

In one order, the FDIC said it found that Yen Leigh Mong Rodgers, a former institution-affiliated party of Richland State Bank (Rayville, La.), from Sept. 30, 2015, through July 17, 2017, manipulated the bank’s payroll system to increase her salary without authorization basis and concealed her actions from the bank. She was assessed an $8,000 civil money penalty.

The FDIC also issued a notice of assessment to Park Bank (Holmen, Wis.). The notice set a fine of $12,841.50 related to findings that the bank engaged in a pattern or practice of violations of the FDIC rules implementing the National Flood Insurance Act and the Flood Disaster Protection Act.

Also in October (and in a set of orders announced Nov. 19), the Office of the Comptroller of the Currency (OCC) imposed a $5 million fine on the federal branch of First Abu Dhabi Bank USA, N.V. in Washington D.C. (a federal branch of First Abu Dhabi Bank USA, N.V. Willemstad, Curaçao), citing violations of Bank Secrecy Act/anti-money laundering (BSA/AML) requirements; it also terminated a 2017 cease-and-desist order against the bank.

FDIC Makes Public October Enforcement Actions

OCC Enforcement Actions and Terminations