OCC sets fine of $35,000, prohibits former DE bank exec over alleged know-your-customer violations

A former vice president of business banking at PNC Bank, N.A., Wilmington, Del., was barred from future service in any insured financial institution and assessed a $35,000 civil money penalty for allegedly circumventing his bank’s “know your customer” controls, according to an order dated Jan. 8 and released Thursday by the Office of the Comptroller of the Currency (OCC).

The OCC, in its order, noted the failure of the former bank employee – Denton Douglas – to respond to the notice last summer or to request a hearing on the assessed civil money penalty.

The OCC said its notice details a plan carried out by Douglas with “Person A,” whose business accounts were previously closed by the bank because of suspicious activity, to use “Person B” as a “straw” account holder/signer for Person A and circumvent the bank’s know-your-customer controls. It stated that Douglas demonstrated “a willful and continuing disregard for the safety or soundness of the Bank.”

In other action, a $5,000 civil money penalty was assessed against Michael Welge, the president, chief financial officer, and chairman of Chester National Bank, Chester, Ill., in a consent order related to the bank’s failure to document the credit analysis necessary to demonstrate that a bank-owned corporate security remained of “investment grade.”

OCC Enforcement Actions and Terminations

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