27-Aug-2008: FDIC cease and desist order against Mizrahi Tefahot Bank, Ltd. Los Angeles, California

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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), cease and desist from the following unsafe and unsound banking practices and violations of laws and/or regulations:
(a) operating in violation of 12 C.F.R. § 326.8 regarding a satisfactory Bank Secrecy Act (“BSA”) and anti-money laundering (“AML”) compliance program;
(b) operating in violation of 12 C.F.R. Part 353 regarding Suspicious Activity Report (“SAR”) procedures to identify, monitor, and report suspicious activities; and
(c) operating in violation of 31 C.F.R. § 103.176(a) regarding lack of due diligence on foreign correspondent accounts.
IT IS FURTHER ORDERED, that the Bank, its institution-affiliated parties, and its successors and assigns, take affirmative action as follows:
1. Within 60 days of the effective date of this ORDER, the Bank shall correct all alleged outstanding violations of law. In addition, the Bank shall take all necessary steps to ensure future compliance with all applicable laws and regulations, including, but not limited to, Office of Foreign Assets Control (“OFAC”) requirements.
2. During the life of this ORDER, the Bank shall not make or renew any “back-to-back” loans or any other similar extensions of credit, including loans and lines of credit, in which collateral securing the extension of credit by the Bank is held by the foreign bank of which the Bank is an insured branch unless the Bank reviews and maintains copies of all records concerning the collateral, including, but not limited to, records documenting the owner of the collateral.
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Detailed report link: here