Gainesville-based Florida Citizens Bank must enact new procedures to detect and report suspicious account activity in order to comply with federal and state regulations as the result of a routine bank examination.The Federal Deposit Insurance Corp. and Florida Office of Financial Regulation issued a consent order April 20 after the bank board of directors agreed to new procedures April 12. The FDIC announced the consent order Friday.
The bank must enact new policies and procedures to detect and report high-risk and suspicious activities to comply with the Bank Secrecy Act of 1970 that requires banks to assist federal agencies to prevent money laundering, tax evasion and other criminal activities.
Florida Citizens must monitor and report wire transfers or cash deposits of significant amounts, said Gainesville lawyer James Quincey, the bank's board chairman.
An independent auditor will review high-risk accounts and transactions going back to Jan. 1, 2008.
Quincey said the examination found no evidence of money laundering.
Florida Office of Financial Regulation spokeswoman Flora Beal confirmed that the order was the result of a routine examination but said any information regarding specific activity is confidential.
Quincey said one example of what regulators criticized included the bank not reporting wire transfers that board member Terry Crawford made for his company, Ocala-based Conimar Corp., a plastic placemats and household items manufacturer that does business in China.
“They criticized us for not reporting those wire transfers as a suspicious activity even though we knew what the transfer was about,” Quincey said.
Crawford could not be reached for comment.