Attorney General Jerry Brown announced a settlement Thursday with First Regional Bank that prevents the Los Angeles bank from processing the payments of retailers who illegally sell tobacco products online.

Brown, along with attorneys general of New York and Idaho, investigated the banking practices of First Regional, and concluded that the company knew it was facilitating illegal tobacco sales by processing the Internet sales.

“We’re pleased that First Regional has agreed to take measures to address this important issue and hope that other banks and companies involved in online tobacco sales will follow suit,” Brown said in a statement.

Under the settlement agreement, First Regional agreed to pay $60,000 in civil penalties, fees and costs, and maintain a policy to not facilitate online tobacco sales.

First Regional also agreed to publish its tobacco policy on its Web site, obtain information and conduct background checks of its customers. It also will end business relationships with customers who violate the policy.

The agreement with First Regional is part of California’s effort to enforce a 1998 settlement between the nation’s largest tobacco companies and state attorneys general aimed at reduce smoking in the U.S.

First Regional could not be reached for immediate comment.