Digital money problems for Schwab
George at Orwellian.Org
George at Orwellian.Org
Fri Jul 13 15:51:30 PDT 2001
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.
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