EagleBank and its parent company agreed to pay $9.7 million under a DOJ nonprosecution agreement, admitting to willfully failing to implement an AML program and allowing its former CEO’s friend to run a check-kiting scheme through the bank for over a decade. Senior executives repeatedly overrode compliance personnel who tried to close the accounts. The bank also had a 2022 settlement with the SEC and Fed for failing to disclose related party loans.
It’s an important reminder that compliance is non-negotiable, regardless of relationship pressure.
Additional reporting: https://www.bankingdive.com/news/eaglebank-pay-97-million-resolve-bsa-violations/824232/