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OCC enforcement actions: Bank of China - New York Branch ordered to pay $12.5M

The Office of the Comptroller of the Currency on June 15 announced a number of enforcement actions in the banking sector.

The following list excludes actions previously covered by S&P Global Market Intelligence and those that do not meet criteria for news coverage. Click here to view SNL's full database of enforcement actions against U.S. banks and thrifts.

Cease and desist order; civil money penalty order; termination of existing enforcement action

The OCC on April 24 issued a consent order to Bank of China Ltd.'s Bank of China - New York Branch. The regulator has identified deficiencies in the branch's Bank Secrecy Act/anti-money laundering compliance program and compliance with the requirements of the Office of Foreign Asset Control.

The branch consented and agreed to the issuance of the consent order without admitting or denying any wrongdoing.

In a consent order for a civil money penalty, also dated April 24, the branch was directed to pay $12.5 million.

Also on April 24, the OCC terminated a formal agreement it entered into with the branch on Dec. 16, 2015.

Civil money penalty order; removal/prohibition order

On May 22, the OCC ordered former NebraskaLand National Bank Senior Vice President and Kearney Market President Justin Schwartz to pay a civil money penalty of $10,000. He was also banned from participating in the banking sector.

The OCC found that Schwartz engaged in various loan misconduct and made false statements and representations to a customer that he was authorized to sell bank stock. Schwartz neither admitted nor denied any of the OCC's findings.

The North Platte, Neb.-based bank is a unit of NebraskaLand Financial Services Inc.

Removal/prohibition order

The OCC on May 30 prohibited Keith McCormick, former loan officer, senior vice president of business banking and director at Security National Bank of Omaha, from taking part in the banking industry. The regulator found that McCormick misapplied bank funds, forged documents, concealed pertinent information from bank management, and caused the bank to suffer a loss of $104,000. McCormick neither admitted nor denied any wrongdoing.

The Omaha, Neb.-based bank is a unit of Security National Corp.