TCF Financial fined $10M for lapses in monitoring
MINNEAPOLIS (AP) — TCF Financial Corp. has been fined $10 million for failing to adequately monitor suspicious bank transactions, including some with possible links to terrorism.
Federal officials accused the Wayzata bank of failing to comply fully with the Bank Secrecy Act, which requires financial institutions to make sure they aren't used to launder money, the Minneapolis Star Tribune reported.
The Office of the Comptroller of the Currency, which announced the fine Friday, said it was concerned about cash transactions that appeared to be manipulated, as well as wire transfers where the source and purpose of the funds weren't known.
Regulators have stepped up enforcement of the Bank Secrecy Act in recent years. Last month, British banking giant HSBC agreed to pay $1.9 billion to settle allegations of laundering money for Mexican drug cartels and countries under U.S. embargoes, such as Iran.
TCF, Minnesota's third-largest bank with $19 billion in assets, was accused of being late to file 2,357 reports of suspicious orders between 2008 and 2010. Regulators highlighted 13 cases, involving about $7.2 million, in which the lender failed to properly file reports "related to transactions indicative of possible terrorist financing," according to the consent order.