City National Pays $750,000 to End Federal Money-Laundering Investigation

0

City National Bank, targeted by federal regulators last year for alleged violations of the Bank Secrecy Act and other money-laundering laws, agreed to pay a $750,000 fine to settle the investigation.


City National, a unit of City National Corp., disclosed in January that it was in talks with the Office of the Comptroller of the Currency for violations of the Bank Secrecy Act, which requires that banks keep basic data on their customers, such as reporting sources of income.


Banks have been on the front lines of the federal effort to crack down on terrorist activity after Sept. 11, 2001.


The bank has added a large number of compliance officers to meet the legal and regulatory requirements of the act, and reiterated its “commitment to further improvements and full compliance.”


Cary Walker, a spokesman for the bank, declined to comment on the consent agreement.


Analysts said City National has a number of entertainment clients who are prone to depositing and withdrawing large amounts of money and at times refused to disclose their financial information.


The fine, which amounts to less than a penny a share, received scant attention on Wall Street. Shares rose slightly Friday to $67.96 a share.

No posts to display