Federal Reserve System Issues Order to Cease and Desist and Order of Assessment of Civil Money Penalty to Higher One, Inc. and Federal Deposit Insurance Corporation Issues an Order for Restitution and Order to Pay Civil Money Penalty Higher One, Inc
Dec 23 15
On December 23, 2015, the board of Governors of the Federal Reserve System issued to Higher One, Inc., a wholly-owned subsidiary of Higher One Holdings, Inc., an order to cease and desist and order of assessment of civil money penalty issued upon consent pursuant to the Federal Deposit Insurance Act, as Amended (Fed Order), related to the Federal Reserve Board matter previously disclosed in the company's Form 10-K and Form 10-Q filings. Pursuant to the terms of the Fed Order, Higher One is required to, among other things: continue to take all action necessary to correct all violations previously cited by the Federal Reserve Board and prevent the recurrence of similar violations; submit to the Philadelphia Reserve Bank an acceptable written plan to enhance the consumer compliance risk management program to ensure that the marketing, processing, and servicing of student financial aid-related deposit or loan products or services by Higher One comply with all consumer protection laws and regulations; deposit $24,000,000 into a qualified settlement fund for purposes of providing restitution of certain OneAccount fees to consumers, as provided by the Fed Order, and submit to the Philadelphia Reserve Bank an acceptable written plan to provide for the restitution; and pay a civil money penalty of $2,231,250. Also on December 23, 2015, the Federal Deposit Insurance Corporation (FDIC) issued to Higher One a consent order, order for restitution and order to pay civil money penalty related to the FDIC matter previously disclosed in the Company's Form 10-K and Form 10-Q filings. Pursuant to the terms of the FDIC Order, Higher One is required to, among other things: continue to correct and eliminate all violations of law previously cited by the FDIC and prevent the recurrence of similar violations; review its Compliance Management System as it relates to its student financial aid-related deposit or loan products and revise, develop and/or implement changes as necessary to ensure such products and services comply with all applicable consumer protection laws; deposit $31,000,000 into a segregated deposit account for the purpose of providing restitution of certain OneAccount fees to consumers, as provided by the FDIC Order; and submit to the Regional Director of the FDIC for non-objection a plan to provide restitution; and pay a civil money penalty of $2,231,250. Concurrent to Higher One entering this FDIC Order, the FDIC lifted the August 7, 2012 Consent Order previously disclosed in the Company's Form 10-K and Form 10-Q filings.
Federal Reserve Board Announces Civil Money Penalty and Issues Cease and Desist Order against Deutsche Bank AG
Nov 12 15
The Federal Reserve Board on November 11, 2015 announced a $58 million penalty and consent cease and desist order against Deutsche Bank AG related to violations of U.S. sanctions. The order requires Deutsche Bank to implement an enhanced program to ensure global compliance with U.S. sanctions administered by the U.S. Department of Treasury's Office of Foreign Assets Control. The actions were taken by the Federal Reserve for unsafe and unsound practices at Deutsche Bank. The firm did not have sufficient policies and procedures to ensure that activities conducted at its offices outside of the United States complied with U.S. sanctions laws and were reported in a timely manner in response to inquiries by the Federal Reserve Bank of New York. The Federal Reserve's order is being issued in conjunction with an action by the New York State Department of Financial Services for violations of various New York state laws. The total penalty issued by both agencies is $258 million. The Federal Reserve order also prohibits Deutsche Bank from re-employing the individuals involved in the past actions or retaining them as consultants or contractors. Deutsche Bank has agreed to cooperate in the investigations of former individuals who may have been involved in the conduct underlying the enforcement action, but is not the subject of these investigations.
Deutsche Bank Will Pay $258 Million Penalty Imposed by The Federal Reserve and New York State Department of Financial Services
Nov 5 15
Deutsche Bank will pay $258 million and terminate six employees for processing transactions that benefited Iran and other blacklisted nations. The Federal Reserve and New York State Department of Financial Services imposed the penalties after finding that Deutsche Bank's Manhattan-based division handled U.S. dollar transactions valued at more than $10.86 billion for Iranian, Libyan, Syrian, Burmese and Sudanese financial institutions and other entities. The transactions, processed from at least 1999 through 2006, were forbidden based on U.S. sanctions imposed over findings of terrorism or other potential threats to the U.S. Emails uncovered by investigators showed bank employees and customers knew the transactions were improper.