The Treasury Department's Financial Crimes Enforcement Network on Dec. 15 slapped a $500,000 civil money penalty against Bethex Federal Credit Union for violating anti-money laundering regulations.
Other violations include Bethex's failure to timely detect and report suspicious activity to FinCEN and not filing any suspicious activity reports, or SARs, from 2008 to 2011. While the credit union filed 28 SARs in 2013, they were submitted late. Most of those filed were "inadequate and contained short, vague narratives."
Bethex was liquidated in December 2015 after the NCUA found that the credit union was insolvent with no prospect for restoring viable operations on its own.
The penalty will not affect the National Credit Union Share Insurance Fund or any other credit union.