Fed fines two banks over federal flood insurance rule violations

Civil money penalties (CMPs) totaling $18,900 were imposed on two banks in Arkansas and Minnesota under enforcement orders announced Tuesday by the Federal Reserve Board.

The consent orders show that Evolve Bank &Trust, West Memphis, Ark., was assessed a CMP of $13,950 and North American Banking Company, Roseville, Minn., was assessed $4,950 over findings of violations of the Fed’s Regulation H, which implements the National Flood Insurance Act.

The orders note that a pattern or practice of violations of the act’s provisions can result in civil money penalties of up to $2,000 for each violation.

Federal Reserve Board issues enforcement actions with Evolve Bank & Trust and North American Banking Company