Tuesday, June 16, 2015

Bank of Mingo charged with failing to develop, maintain anti-money laundering program

U.S. Attorney Booth Goodwin announced Monday the Bank of Mingo has been charged with failing to develop, implement and maintain an effective anti-money laundering program.
According to a news release, the bank failed to implement internal controls that would have resulted in the bank obtaining “know-your-customer” information, failed to prevent customers from structuring cash transactions to avoid currency transaction reporting requirements and failed to file “suspicious activity report,”
The bank will now have one year to demonstrate full responsibility and get a plan in place. They entered into a deferred prosecution agreement (DPA) with the Department of Justice. The DPA is not a guilty plea, but rather a voluntary arrangement where the prosecution is deferred for a period of one year. Goodwin filed the motion.
The motion stated that Goodwin and the Bank of Mingo have signed an agreement, including a “Stipulation of Facts,” where the bank admitted the conduct that it was charged. The bank agreed to cooperate with the United States and to forfeit $2.2 million that was previously represented in an amount that was involved in illegal transactions.
According to a statement released by the Bank of Mingo, they have appointed a new BSA compliance officer, developed and implemented revised policies for compliance with the BSA and internal controls to ensure such compliance and have established a corporate wide training program regarding BSA compliance.

The investigation of the case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, the Federal Deposit Insurance Corporation-Office of Inspector General, and the West Virginia State Police-Bureau of Criminal Investigation.