A prohibition of a former bank employee and a civil money penalty assessment against a bank over federal flood insurance violations were announced Tuesday by the Federal Reserve Board.
The Fed, in a July 30 consent order, said it assessed a $26,500 civil money penalty against Commercial Bank, Harrogate, Tenn., over findings of the bank’s pattern or practice of violations of Federal Reserve rules (Regulation H) implementing the National Flood Insurance Act.
The same day, the Fed issued an order barring Kristyn Kelly, a former financial relationship specialist at Regions Bank, Birmingham, Ala., from future service in any federally insured depository institution. In the consent order, the Fed said Kelly between February 2020 and July 2020 processed “several” transactions, including four withdrawals from a customer’s demand deposit account without the customer’s authorization or presence. It said the bank suffered a temporary financial loss of about $21,000 after charging off the negative-balance account but was ultimately repaid in full.