ENFORCEMENT ACTIONS AND TERMINATION OF PREVIOUS ACTIONS.The Federal Reserve Board on December 12, 2000, announced the issuance of several enforcement actions related to foreign banking organizations that had been involved with Operation Casablanca. Operation Casablanca was a law enforcement undercover operation that resulted in numerous criminal money laundering The process of taking the proceeds of criminal activity and making them appear legal. Laundering allows criminals to transform illegally obtained gain into seemingly legitimate funds. convictions of drug traffickers, bankers, and two foreign banking organizations with operations in the United States--Bancomer, S.A., Mexico City, Mexico, and Banca Serfin, S.A., Lomas de Sante Fe, Mexico. The Federal Reserve provided substantial assistance to the U.S. Customs Service and the U.S. Department of Justice during the undercover operation and subsequent prosecutions. On May 18, 1998, in response to the alleged misconduct by employees of several foreign banking organizations whose activities were identified during Operation Casablanca, the Federal Reserve Board issued temporary orders to cease and desist Cease and desist (also called C & D) is a legal term used primarily in the United States which essentially means "to halt" or "to end" an action ("cease") and to refrain from doing it again in the future ("desist"). . The temporary orders required the banks to enhance their anti-money-laundering policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental in the United States. The Federal Reserve Board's actions included the following: * The issuance of an order with regard to Bancomer, S.A., determining that it is not necessary to terminate the U.S. operations of the bank as a result of the bank's conviction for a money laundering offense in the United States * The issuance of a consent cease and desist order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. against Bancomer, S.A., requiring continued enhancements of the bank's anti-money-laundering policies and procedures * Because Banca Serfin, S.A. ceased all operations in the United States at the end of 1999, no further enforcement action against the bank was necessary * The issuance of a written agreement between Banco Industrial de Venezuela and the Federal Reserve Bank of Atlanta The Federal Reserve Bank of Atlanta is responsible for the 6th District of the Federal Reserve, which covers Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee. , requiring continued enhancements of the bank's anti-money-laundering policies and procedures * The termination of the temporary orders to cease and desist that had been issued against Bancomer, S.A., Banca Serfin, S.A., and Banco Industrial de Venezuela. In March 2000, the Federal Reserve Board terminated temporary cease and desist orders that had been issued in 1998 against Banco Nacional de Mexico, Mexico City, Mexico; Banco Internacional, S.A., Mexico City, Mexico; and Banco Santander, Madrid, Spain. The issuance of these enforcement actions concludes the Federal Reserve's enforcement efforts arising out of Operation Casablanca. The Federal Reserve Board on December 12, 2000, announced the issuance of an order of prohibition against Bruce Jeffrey Kingdon, a former partner, operating committee member, managing director, employee, and institution-affiliated party of the Bankers Trust Company, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York. Mr. Kingdon, without admitting to any allegations, consented to the issuance of the order as a result of his alleged violations of law, unsafe or unsound unsound said of an animal, usually a horse, which has been examined for soundness and found to be unsatisfactory. banking practices, and breaches of his fiduciary duties to Bankers Trust and its customers. The Federal Reserve Board on December 12, 2000, announced the execution of a written agreement by and between People's Bancshares, Inc., New Bedford, Massachusetts New Bedford is a city in Bristol County, Massachusetts, located about 51 miles (82 kilometers) south of Boston, 28 miles (45 kilometers) southeast of Providence, Rhode Island, and about 12 miles (19 kilometers) east of Fall River. , and the Federal Reserve Bank of Boston The Federal Reserve Bank of Boston is responsible for the First District of the Federal Reserve, which covers Connecticut (excluding Fairfield County), Massachusetts, Maine, New Hampshire, Rhode Island and Vermont. It is headquartered in Boston, Massachusetts. . The Federal Reserve Board announced on December 13, 2000, the issuance of a final decision and order of prohibition against Kaye G. Hill, former employee, Barnett Bank, N.A., Jacksonville, Florida. The order, the result of an action brought by the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. , prohibits Ms. Hill from participating in the conduct of the affairs of any financial institution or holding company. |
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