West Suburban Bank, Lombard, Illinois, has received an FDIC cease-and-desist order for not doing the regulator’s job. Unlike most cease and desist orders having to do with lending practices, West suburban Bank’s order has to do with monitoring clients accounts.
The “cease and desist” order, issued Dec. 3 and released Friday, said the regulators had reason to believe the bank violated requirements of the federal Bank Secrecy Act, which demands that banks monitor customer transactions and submit reports of suspicious money movements to federal authorities.
West Suburban consented to the order without admitting or denying the charges.
Regulators are requiring the bank to designate a senior executive to be responsible for Bank Secrecy Act compliance, analyze whether it needs to hire additional staff, and create a new board committee focused solely on the issue.
Another unusual aspect of West Suburban is that it was actually profitable in 2008. You can read the PDF from the official FDIC webpage here.