Due to anti-money laundering failures, they fine a US bank that serves the border with Mexico

Eight kilometers from Matamoros, Tamaulipas, on the United States side, is one of the 10 branches that the Texas Community Bank It has in the neighboring nation to the north, all very close to the Mexican territory. Today this bank was strongly singled out by US regulators for failing in its money laundering prevention controls and letting fortunes of subjects with criminal investigations behind them pass to the financial system.

From 2015 to 2019, this bank, with origins from 2003, infringed part of the rate of antilavado of the American financial system. According to Financial Crimes Enforcement Network (FinCEN), the bank admitted that it did not intentionally implement, or maintain, an effective anti-money laundering program.

“(The bank) admitted that it deliberately failed to inform FinCEN of hundreds of suspicious transactions that involved illegal financial activities by its clients and that were processed through the bank, even after the bank realized that certain clients were subjects of criminal investigations, “said this US authority.

According to the agency he heads, on an interim basis Himamauli Das, there is a record that said omissions by the US bank that operates in the border with Mexico caused suspicious transactions of millions of dollars not to be reported to the authority in a timely and accurate manner, including operations related to tax evasion, illegal gambling, money laundering and other financial crimes.

“Today’s action should serve as a reminder to banks of all sizes that FinCEN and our regulatory partners will work closely together to ensure that banks comply with the Bank Secrecy Act and its implementing regulations to combat money laundering. money and promote national security, “Das said in a statement when the sanctions were announced.

In accordance with FinCEN, the fine to be paid by the Texas Community Bank It amounts to 8 million dollars, of which 7 million dollars correspond to infractions imposed by this authority and 1 million dollars for penalties from the Office of the Comptroller of the Currency (OCC).

In US government documents, it was exemplified that the bank omitted relevant things in its anti-money laundering controls. For example, with a company that operated both in the United States and in other high-risk drug trafficking nations, it was not initially questioned as to whether it conducted international operations.

Another case that registered FinCEN the accusation has to do with a former public accountant who in 2013 pleaded guilty to a tax offense and his story was published in various media; However, despite this person’s history, the Texas Community Bank He brought him on as a customer in 2017 and allowed him to open an account for use at a gambling establishment.

At the same time, the bank allowed other accounts to be opened for medical or health care businesses, despite the fact that the holders of the account did not have a history of such activity.

“This client’s accounts, as well as his activity, had several red flags of money laundering or illegal conduct, including the use of the same business address to register multiple businesses or the use of business accounts with unexplained periods,” it read in United States government documents.

Several operations had to pass for this bank to inform the authorities, through an amended suspicious activity report, the explanation that the suspicious operations of the account holder amounted to 30 million dollars.

Of the 10 branches of this bank in the United States, six are located on the border with Mexico, specifically with Tamaulipas, Nuevo León and Coahuila.

According to the United States regulator, the sanctions have to do specifically with intentional infractions of the Bank Secrecy Law of that country, as well as anti-money laundering regulations.


1 thought on “Due to anti-money laundering failures, they fine a US bank that serves the border with Mexico”

  1. You reference the wrong bank in this article. It’s actually CommunityBank of Texas, N.A., which is a Beaumont, Texas based bank. The real bank has no branches anywhere near the Mexican border.


Leave a Comment