WASHINGTON (3/2/15)--After the bank admitted it failed to file suspicious activity reports on transactions involving illicit proceeds from a judicial corruption scheme, the Financial Crimes Enforcement Network (FinCEN) assessed a $1.5 million civil money penalty against the First National Community Bank (FNCB) of Dunmore, Pa.
FinCEN charges that FNCB "willfully" violated the Bank Secrecy Act during a corruption scheme that spanned five years.
FinCEN reported that two former Pennsylvania judges were convicted of misusing their positions as judges to profit from, among other things, sending thousands of juveniles to detention facilities in which the judges had a financial interest. Despite several red flags indicating suspicious activity, FinCEN said in a release, FNCB did not file a single suspicious activity report even after one judge's first guilty plea in the matter in 2009.
"The criminal case affected the lives of thousands of children and parents," noted FinCEN Director Jennifer Shasky Calvery. "Banks have a duty to spot suspicious activity and to report it. Law enforcement relies on this valuable information. FNCB's failure to file timely suspicious activity reports may have deprived law enforcement of information valuable for tracking millions of dollars in related corrupt funds."