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[¶10,798] In the Matter of Bank of Westminster, Westminster, California, Docket No. FDIC-93-100b (5-12-93).
Bank to cease and desist from violating rules and regulations concerning the Bank Secrecy Act.
[.1] Bank Secrecy Act—Compliance Required
[.2] Violations of Law—Eliminate/Correct
[.3] Compliance Reports—To State Banking Superintendent
[.4] Shareholders—Disclosure—Cease and Desist Order
In the Matter of
BANK OF WESTMINSTER
WESTMINSTER, CALIFORNIA
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-93-100b
Bank of Westminster, Westminster, California ("Bank"), having been advised of its right to a Notice of Charges and of Hearing detailing the violations of laws, rules, and/or regulations alleged to have been committed by the Bank and of its right to a hearing on the alleged charges under Section 8(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b)(1), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") with Counsel for the Federal Deposit Insurance Corporation ("FDIC"), dated April 19, 1993, whereby solely for the purpose of this proceeding and without admitting or denying the alleged charges of violations of laws, rules, and/or regulations, the Bank consented to the issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.
The FDIC considered the matter and determined that it had reason to believe that the Bank had committed violations of laws, rules, and/or regulations. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:
ORDER TO CEASE AND DESIST
IT IS HEREBY ORDERED that the Bank, and any institution-affiliated party as such term is defined in Section 3(u) of the Act, 12 U.S.C. § 1813(u), cease and desist from violating the following laws, rules, and/or regulations:
(a) Section 326.8 of the Rules and Regulations of the Federal Deposit Insurance Corporation, 12 C.F.R. § 326.8; and
(b) Sections 103.22 and 103.27 of the Rules and Regulations of the Department of the Treasury, 31 C.F.R. §§ 103.22 and 103.27, made applicable to insured state nonmember banks by 31 C.F.R. § 103.46.
IT IS FURTHER ORDERED that the Bank take affirmative action as follows:
[.1] 1. (a) Within 60 days from the effective date of this ORDER, the Bank shall comply in all material respects with the Bank Secrecy Act and its implementing rules and regulations which shall include, but is not limited to, taking the following measures to eliminate and/or correct all violations of the Bank Secrecy Act cited in the FDIC's Compliance Report of the Bank as of November 2, 1992:
(b) Develop and implement a formal written compliance program which, at a minimum, adheres to the following four requirements as set forth in Section 326.8(c) of the FDIC Rules and Regulations.
(i) providing for a system of internal controls to assure ongoing compliance;
(ii) providing for independent testing for compliance to be conducted by bank personnel or by an outside party;
(iii) designating a senior bank official who is responsible for coordinating and monitoring day-to-day compliance; and
(iv) providing training for appropriate personnel.
[.2] 2. Within 60 days from the effective date of this ORDER, the Bank shall, to the extent legally possible, eliminate or correct each violation cited in the FDIC's Compliance Report of the Bank as of November 2, 1992, which involves the following laws, rules and/or regulations:
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(a) Section 226.6 of Regulation Z, 12 C.F.R. §226.6;
(b) Sections 229.10, 229.12, 229.13, and 229.16 of Regulation CC, 12 C.F.R. §§ 229.10, 229.12, 229.13, and 229.16;
(c) Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681(m);
(d) Section 202.9 of Regulation B, 12 C.F.R. § 202.9;
(e) Sections 203.4 and 203.5 of Regulation C, 12 C.F.R. §§ 203.4 and 203.5;
(f) Sections 338.4 and 338.8 of the FDIC Rules and Regulations, 12 C.F.R. §§ 338.4 and 338.8; and
(g) Sections 335.3, 335.4 and 335.6 of the FDIC Rules and Regulations, 12 C.F.R. §§ 335.3, 335.4, and 335.6.
3. The Bank shall take all further necessary steps to ensure future compliance with all applicable banking laws, rules and/or regulations.
[.3] 4. On the tenth day of the second month following the effective date of this ORDER, and on the tenth day of every sixth month thereafter, the Bank shall furnish written progress reports to the Regional Director of the FDIC's San Francisco Regional Office ("Regional Director") and to the Honorable James E. Gilleran, Superintendent of Banks for the State of California ("Superintendent") which details the form and manner of any actions taken to secure compliance with this ORDER and the results thereof. The Bank may discontinue submitting such reports when the corrections required by this ORDER have been accomplished and the Regional Director and the Superintendent have expressly released the Bank in writing from making any further reports.
[.4] 5. The Bank shall send to its shareholders a copy of this ORDER or a description of this ORDER in conjunction both with the Bank's next shareholder communication and with its notice and/or proxy statement preceding the Bank's next shareholder meeting. If the Bank sends its shareholders a description of this ORDER rather than a copy of it, the description shall fully describe this ORDER in all respects.
This ORDER shall be binding upon the Bank and its directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties.
The provisions of this ORDER shall become effective 10 days from the date of its issuance and shall remain in effect and enforceable except to the extent that, and until such time as, any of its provisions shall have been modified, terminated, suspended, or set aside by the FDIC.
Dated at San Francisco, California this 12th day of May, 1993.
Pursuant to delegated authority.
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