[¶11,828] In the Matter of First State Bank of Thermopolis, Thermopolis, Wyoming,
Docket No. 01-129b (8-28-01)
A cease and desist order was issued, based on findings by the FDIC that
it had reason to believe that respondent had engaged in unsafe and
unsound practices. (This order was terminated by order of the FDIC dated 12-14-01; see ¶16,296.)
[.3] ShareholdersDisclosure of Cease and Desist Order Required
In the Matter of
FIRST STATE BANK OF THERMOPOLIS THERMOPOLIS, WYOMING (Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
First State Bank of Thermopolis, Thermopolis, Wyoming,
("Bank"), having been advised of its right to a Notice of Charges
and of Hearing detailing the unsafe or unsound banking practices and
violations of law and/or regulation 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 August 22, 2001, whereby
solely for the purpose of this proceeding and without admitting or
denying the alleged charges of unsafe or unsound banking practices and
violations of law and/or regulation, 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 engaged in unsafe or unsound banking
practices and had committed violations of law and/or regulation. The
FDIC, therefore, accepted the CONSENT AGREEMENT and issued the
ORDER TO CEASE AND DESIST
IT IS HEREBY ORDERED, that the Bank, its institution-affiliated
parties, as that term is defined in Section 3(u) of the Act, 12 U.S.C.
§ 1813(u), and its successors and assigns cease and desist from the
following unsafe and unsound banking practices and violations of law
(a) operating in violation of section 326.8(c)(2) of the Rules and
Regulations of the Federal Deposit Insurance Corporation, 12 C.F.R.
§ 326.8(c)(2), as more fully described on page 25 of the FDIC's
Report of Examination as of April 9, 2001.
IT IS FURTHER ORDERED, that the Bank, its institution-affiliated
parties, and its successors and assigns, take affirmative action as
[.1] 1. Within 30 days from the effective date of this ORDER, the Bank shall
comply in all material respects with the Bank Secrecy Act and its rules
and regulations. Such compliance shall include, but is not limited to,
taking the following measures:
a. eliminating and/or correcting the violation cited on page 25 of
the FDIC's Report of Examination of the Bank as of April 9, 2001; and
b. independently testing for compliance with the Bank Secrecy Act and
31 C.F.R. Part 103. The independent testing should be conducted on an
annual basis in compliance with the procedures described in the FDIC's
"Guidelines for Monitoring Bank Secrecy Act Compliance." The
testing, at a minimum, should include the following:
(i) a test of the Bank's internal procedures for monitoring BSA;
(ii) a sampling of large currency transactions followed by a review of
the Currency Transaction Reports filings;
(iii) a test of the validity and reasonableness of the customer
exemptions granted by the Bank;
(iv) a test of the Bank's recordkeeping system for compliance with the
(v) documentation of the scope of the testing procedures performed and
the findings of the testing. Written reports should be prepared which
document the testing results and provide recommendations for
improvement and shall be presented to the Bank's Board of Directors
and noted in official board minutes.
[.2]2. The Board of Directors shall monitor and confirm the completion of
actions taken by management to comply with the terms of this ORDER. The
Board of Directors shall certify in writing to the Regional Director
when all of the above actions have been accomplished. All actions taken
by the Board of Directors pursuant to this ORDER shall be duly noted in
the minutes of its meetings.
3. Within 30 days of the end of the calendar quarter following the
effective date of this ORDER, and within 30 days of the end of each
calendar quarter thereafter, the Bank shall furnish written progress
reports to the Regional Director detailing the form and manner of any
actions taken to secure compliance with this ORDER and the results
thereof. Such reports may be discontinued when the corrections required
by this ORDER have been accomplished and the Regional Director has
released the Bank in writing from making further reports.
[.3] 4. Following the effective date of this ORDER, 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 shareholders 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 become effective ten (10) days from the date of
The provisions of this ORDER shall remain effective and enforceable
except to the extent that, and until such time as, any provisions of
this ORDER shall have been modified, terminated, suspended, or set
aside by the FDIC.
Pursuant to delegated authority.
Dated at San Francisco, California, this 28th day of August, 2001.