The Federal Deposit Insurance Corp. issued a consent order against Sewell, N.J.-based Parke Bank related to weaknesses in the bank's Bank Secrecy Act and anti-money-laundering compliance program.
Under the terms of the consent order, which was effective Oct. 8, the Parke Bank board must immediately increase supervision and direction of the bank's Bank Secrecy Act and anti-money-laundering, or BSA/AML, compliance program and assume full responsibility for the approval and implementation of sound BSA/AML policies and procedures. The board must also set up a compliance committee with the responsibility of overseeing compliance with the consent order, the BSA and the BSA/AML compliance program.
Additionally, among other things, Parke Bank must designate a qualified individual or individuals acceptable to the FDIC and the New Jersey Department of Banking and Insurance as a BSA officer. The bank must also engage a qualified firm acceptable to the two regulatory agencies to conduct a look back review of accounts and transaction activity for the period beginning Jan. 1, 2019, through the effective date of the consent order.
In consenting to the issuance of the consent order, Parke Bank did not admit or deny any charges of unsafe or unsound banking practices related to the BSA compliance program.
Parke Bank has received, and expects to enter into, a substantially identical stipulation to the issuance of a consent order with the New Jersey Department of Banking and Insurance within the next several days.
The consent orders do not require Parke Bank to pay any civil money penalty or require additional capital, according to a Form 8-K filed by Parke Bancorp Inc., the parent company of the bank.
Parke Bancorp noted in the filing that the bank began implementing corrective actions prior to entering into the consent orders. Because a number of the issues were self-identified, the bank has already taken or commenced actions that will assist in complying with the consent orders and strengthen its BSA compliance practices, policies, procedures and controls, according to the company.
The consent orders are expected to result in additional BSA compliance expenses for the bank and the company. These do not otherwise impact the bank's business activities outside of BSA, according to the filing.