A Kansas bank must pay a $2.5 million civil money penalty (CMP) for its failure to maintain an effective anti-money laundering (AML) program, the federal bank deposit insurer said Friday.
According to the Federal Deposit Insurance Corp. (FDIC), CBW Bank of Weir, Kansas consented to pay the CMP. The FDIC said the assessment was for the bank’s failure to maintain an adequate AML/countering the financing of terrorism (AML/CFT) compliance program from December 2018 until August 2020. The CMP order was effective Sept. 1, the FDIC said.
Meanwhile, among other enforcement actions, the agency said a former Kansas bank board chairman was prohibited from further positions in the banking industry after he pleaded guilty to charges of racketeering conspiracy and embezzlement from a labor organization he worked for.
The FDIC said Truman Warren Fairley served as a director and board chairman of Bank of Labor in Overland Park, Kansas, from 2008 to 2024, and 2023-24, respectively. The agency said Fairley consented to the prohibition, which was issued May 4. The FDIC reported the prohibition Sept. 9 and revealed it publicly Friday.
FDIC Enforcement Decisions and Orders
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