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Enforcement actions.

The Federal Reserve Board on May 10, 2004, announced the issuance of an order of assessment of a civil money penalty in the amount of $100 million against UBS, AG, Zurich, Switzerland, a foreign bank.

UBS, without admitting to any allegations, consented to the issuance of the order in connection with U.S. dollar banknote transactions with counterparties in jurisdictions subject to sanctions under U.S. law, specifically Cuba, Libya, Iran, and Yugoslavia.

The transactions were conducted through UBS's Extended Custodial Inventory (ECI) facility in Zurich, Switzerland, which was operated pursuant to a contract with the Federal Reserve Bank of New York. The Reserve Bank determined that certain former officers and employees of UBS engaged in intentional acts aimed at concealing the transactions and terminated the contract in October 2003.

ECIs are overseas cash depots, operated by banks on behalf of the Federal Reserve, to facilitate distribution and repatriation of U.S. currency.

The Board acknowledged the cooperation of the U.S. Department of the Treasury and its Office of Foreign Assets Control in the preparation of this order. The order is being issued in coordination with a separate action being taken by the Swiss Federal Banking Commission.

The Federal Reserve Board on June 17, 2004, announced the issuance of a final decision and order of prohibition against Stephanie Edmond, a former employee of First Tennessee Bank, N.A., Memphis, Tennessee, as well as Bank of America, N.A., Charlotte, North Carolina. The order, the result of an action brought by the Office of the Comptroller of the Currency, prohibits Ms. Edmond from participating in the conduct of the affairs of any financial institution or holding company.

Cease and Desist Orders

The Federal Reserve Board on May 10, 2004, announced the issuance of a cease and desist order against CAB Holding, LLC, Wilmington, Delaware, and Paul Shi H. Huang, the sole shareholder of CAB Holding, LLC.

The order addresses the violation of certain conditions imposed in writing on CAB Holding and Mr. Huang in connection with the acquisition of The Chinese American Bank, New York, New York.

The Federal Reserve Board on May 14, 2004, announced the issuance of a consent order to cease and desist against Riggs National Corporation, Washington, D.C., a bank holding company, and Riggs International Banking Corporation, Miami, Florida, an Edge corporation.

Riggs National Corporation and Riggs International Banking Corporation, without admitting to any allegations, consented to the issuance of the order in connection with deficiencies relating to the lack of oversight, internal controls, and procedures to ensure compliance with the Bank Secrecy Act.

In separate, coordinated actions, the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network announced the issuance of a consent order and the assessment of a civil money penalty against Riggs Bank, N.A., a subsidiary of Riggs National Corporation and the parent of Riggs International Banking Corporation. The order and penalty relate to violations of the Bank Secrecy Act.

The Federal Reserve Board on May 27, 2004, announced the issuance of a consent order to cease and desist and order of assessment of civil money penalty against Citigroup Inc., New York, New York, a bank holding company, and CitiFinancial Credit Company, Baltimore, Maryland, a nonbank subsidiary of Citigroup.

The order assesses a civil money penalty against CitiFinancial and requires CitiFinancial to pay restitution to certain subprime personal and home mortgage borrowers. The civil money penalty is $70 million, subject to a partial credit for restitution. The order also requires Citigroup and CitiFinancial to take steps to maintain and enhance compliance with consumer protection laws.

Citigroup and CitiFinancial, without admitting any allegations, consented to the issuance of the order in connection with CitiFinancial's lending activities and its conduct during an examination by the Federal Reserve Bank of New York.

Written Agreements

The Federal Reserve Board on April 30, 2004, announced the execution of a written agreement by and among Cache Valley Banking Company, Logan, Utah; the Cache Valley Bank, Logan, Utah; the Utah State Department of Financial Institutions, Salt Lake City, Utah; and the Federal Reserve Bank of San Francisco.

The Federal Reserve Board on May 14, 2004, announced the execution of a written agreement by and among Putnam-Greene Financial Corporation, Eatonton, Georgia; The Citizens Bank of Cochran, Cochran, Georgia; the Banking Commissioner of the State of Georgia, Atlanta, Georgia; and the Federal Reserve Bank of Atlanta.

The Federal Reserve Board on June 1, 2004, announced the execution of a written agreement by and between CIB Marine Bancshares, Inc., Pewaukee, Wisconsin, and the Federal Reserve Bank of Chicago.

The Federal Reserve Board on June 3, 2004, announced the execution of a written agreement by and among Utah Bancshares, Ephraim, Utah; the Bank of Ephraim, Ephraim, Utah; the Utah State Department of Financial Institutions, Salt Lake City, Utah; and the Federal Reserve Bank of San Francisco.

The Federal Reserve Board on July 2, 2004, announced the execution of a written agreement by and between Kenco Bancshares, Inc., Jayton, Texas, and the Federal Reserve Bank of Dallas.

The written agreement addresses, among other things, a violation of a written condition imposed by the Federal Reserve in connection with an application involving Kenco Bancshares, Inc.

The Federal Reserve Board on July 12, 2004, announced the execution of a written agreement by and among the First Midwest Bank, Itasca, Illinois; the Illinois Department of Financial and Professional Regulation; and the Federal Reserve Bank of Chicago.

The Federal Reserve Board, the New York State Banking Department, and the Illinois Department of Financial and Professional Regulation on July 26, 2004, announced the execution of a written agreement by and among ABN AMRO Bank, N.V., Amsterdam, The Netherlands; ABN AMRO's branch in New York, New York; the Federal Reserve Bank of Chicago; the Federal Reserve Bank of New York; the New York State Banking Department; and the Illinois Department of Financial and Professional Regulation.

The written agreement addresses Bank Secrecy Act and anti-money laundering compliance at ABN AMRO's New York branch, including policies and practices relating to the provision of correspondent banking services.

Termination of Enforcement Actions

The Federal Reserve Board on April 30, 2004, announced the termination of the enforcement actions listed below. The Federal Reserve's enforcement action web site, www.federalreserve.gov/boarddocs/ enforcement, reports the terminations as they occur.

* Korea Exchange Bank, Seoul, Korea, and its affiliated branches and agency offices

Order of consent dated May 16, 2000

Terminated April 22, 2004

* First American Bank, Elk Grove Village, Illinois Written agreement dated September 26, 2003 Terminated February 19, 2004

* First State Bank of West Manchester, West Manchester, Ohio

Written agreement dated April 25, 2003

Terminated February 18, 2004

* Madison Bank, Blue Bell, Pennsylvania

Written agreement dated June 20, 2002

Terminated February 9, 2004

* Midstate Bancorp, Inc., Hinton, Oklahoma

Written agreement dated March 1, 2003

Terminated December 2, 2003

* Bank of Ephraim, Ephraim, Utah

Written agreement dated October 26, 2001

Terminated November 11, 2003

* MSB Shares, Inc., and MidSouth Bank, Jonesboro, Arkansas

Written agreement dated February 5, 2002

Terminated October 23, 2003

* Texas Coastal Bank, Pasadena, Texas

Cease and desist order dated May 16, 1995

Terminated October 22, 2003

* O.A.K. Financial Corporation and Byron Center

State Bank, Byron Center, Michigan Written agreement dated October 4, 2002 Terminated October 16, 2003

On June 1, 2004, the Federal Reserve Board announced the termination of the enforcement action listed below.

* The Marathon Bank, Winchester, Virginia

Written agreement dated May 20, 2003

Terminated April 30, 2004
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Article Details
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Title Annotation:Announcements
Publication:Federal Reserve Bulletin
Article Type:Public Notice
Date:Jun 22, 2004
Words:1243
Previous Article:Board seeks nominations for appointments to Consumer Advisory Council.
Next Article:Changes in board staff.


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