Snipped. http://interactive.wsj.com/articles/SB995029046412389105.htm # # July 13, 2001 # # Federal and State Regulators Fine # Charles Schwab Unit $10 Million # # By PAUL BECKETT # Staff Reporter of THE WALL STREET JOURNAL # # Federal and state bank regulators fined Charles Schwab Corp.'s # U.S. Trust unit $10 million -- one of the largest fines levied # against a U.S. bank -- as part of a settlement of allegations # that its internal controls and record-keeping were inadequate. # # The hefty fine, $5 million of which was levied by the Federal # Reserve, $5 million by the New York State Banking Department, # was accompanied by a cease-and-desist order, the second-highest # level of bank enforcement action short of a license revocation. # # People familiar with the matter say that some of the alleged # offenses that caused the severe regulatory action concerned the # bank's failure to report to the federal government currency # transactions over $10,000, as required by a federal law designed # to aid in combating money-laundering. # # The bank also failed to report transactions that appeared designed # to skirt those thresholds, for instance, when a customer either # deposited or withdrew an amount just shy of $10,000, these people # said. One person familiar with the matter said there were such # transactions for $9,999. Another scenario involved customers # making a series of withdrawals close together that totaled more # than $10,000 but were not in keeping with the client's normal # pattern of activity, people familiar with the matter say.