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News Releases
1/24/2005 USA PATRIOT Act Monitor News Release: Post-Employment
Restrictions on Federal Bank Examiners
An employee of a federal banking agency or a Federal Reserve bank who served
two or more months during the final 12 months of his or her employment with
the federal agency as a senior examiner of a depository institution or depository
institution holding company “with continuing, broad responsibility
for the examination (or inspection) of an institution or holding company will
be subject to a new penalty provision if he or she takes a position with the
supervised institution or its holding company. New 12 U.S.C. 1820(k), added
by the Intelligence Reform and Terrorism Prevention Act of 2004, applies if
such an employee accepts compensation as an employee, officer, director, or
consultant from the supervised institution (or its holding company). The legislation
may reflect Congressional reaction to the employment of a former examiner by
the Riggs Bank, who influenced his former colleagues regarding examinations
of the bank. Former examiners may be subject to an industry-wide order prohibiting
"such person from further participation in the conduct of the affairs of
the depository institution" for up to five years, and a civil money penalty
up to $250,000. A waiver may be granted by a federal banking agency on a case
by case basis. The new provision is effective with the date of enactment of
the Intelligence Act, December 17, 2004.Other provisions of the Intelligence
Act affecting financial institutions will be discussed in detail in the February
issue of the Monitor, as well as being included in the checklists for banks,
broker-dealers, and money services businesses, posted at http://www.civicresearchinstitute.com/moneylaundering.
USA PATRIOT ACT MONITOR is published by Civic Research Institute, Inc., 4478 U.S. Route 27, P.O. Box 585, Kingston, NJ 08528, 609-683-4450, info@civicresearchinstitute.com, as an update service for Money Laundering, Terrorism and Financial Institutions: Law · Regulation · Compliance · USA PATRIOT Act Monitor © 2004 Civic Research Institute, Inc. All rights reserved. Unauthorized copying expressly prohibited. The information in this publication is not intended to replace the services of a trained legal professional. Neither the editors, nor the contributors, nor Civic Research Institute, Inc. are by this publication engaged in rendering legal, accounting, or other professional services. The editors, contributors, and Civic Research Institute, Inc., specifically disclaim any liability, loss, or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use or application of the contents of this publication.