Enforcement actions. (Announcements).Federal and state banking regulators announced on November 14, 2001, the issuance of a joint order 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"). and order of assessment of a civil money penalty and monetary payment against the State Bank of India State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Bengal, it is the oldest commercial bank in the Indian Subcontinent. , Mumbai, India, and the bank's three branches in New York, New York, its branch in Chicago, Illinois, and its agency in Los Angeles, California. The State Bank of India, without admitting to any allegations, consented to the issuance of the order. The State Bank of India paid a total of $7.5 million in fines under the order issued by the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. , and the New York State Banking Department. One-half of this amount will be paid to the U.S. Department of the Treasury and the other half to the State of New York under applicable federal and state laws. The fines result from the bank's apparent engagement in unsafe and unsound practices related to its failure to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires U.S.A. financial institutions to assist U.S. government agencies to detect and prevent money laundering. , violations of the FDIC's regulations relating to Bank Secrecy Act compliance, failure to maintain correct and accurate books and records, and violations of New York State law relating to the bank's obligation to maintain accurate books and records and to make reports to the New York State Banking Department. The Federal Reserve Board announced on November 16, 2001, the execution of a written agreement by and among Cerritos Valley Bancorp, Artesia, California; the Cerritos Valley Bank, Artesia, California; and the Federal Reserve Bank of San Francisco The Federal Reserve Bank of San Francisco is the federal bank for the twelfth district in the United States. The twelfth district is made up of nine western states—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—plus American Samoa, . The Federal Reserve Board announced on November 28, 2001, the issuance of a 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 the Gulf Bank, Miami, Florida. The Federal Reserve Board announced on December 3, 2001, the execution of a written agreement by and among the Bank of Little Rock, Little Rock, Arkansas, the Federal Reserve Bank of St. Louis, and the Arkansas State Bank Department. |
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