Federal Reserve Board Announces Termination of Enforcement Action with Marblehead Bancorp and Marblehead Bank
January 23, 2025
Washington, D.C. – The Federal Reserve Board (FRB) today announced that it has terminated an enforcement action against Marblehead Bancorp, Inc. (Marblehead Bancorp) and its subsidiary, Marblehead Bank (Marblehead Bank). The action was initiated in 2021 in response to concerns about the bank’s compliance with the Bank Secrecy Act (BSA).
Under the terms of the termination agreement, Marblehead Bancorp and Marblehead Bank will continue to take steps to improve their BSA compliance program. The bank has also agreed to pay a civil money penalty of $1.5 million.
The FRB’s enforcement action against Marblehead Bancorp and Marblehead Bank was part of a broader effort to ensure that banks are taking appropriate steps to prevent money laundering and other financial crimes. The FRB has taken a number of enforcement actions against banks for BSA violations in recent years, and it is expected to continue to do so in the future.
Background
The BSA is a federal law that requires banks to take steps to prevent money laundering and other financial crimes. Banks are required to develop and implement BSA compliance programs that include policies and procedures for identifying and reporting suspicious activity.
In 2021, the FRB conducted an examination of Marblehead Bank and found that the bank had failed to implement an effective BSA compliance program. The bank had not adequately identified and reported suspicious activity, and it had not taken appropriate steps to prevent money laundering.
Enforcement Action
In response to the examination findings, the FRB issued a consent order against Marblehead Bancorp and Marblehead Bank. The consent order required the bank to take steps to improve its BSA compliance program. The bank was also required to pay a civil money penalty of $1.5 million.
Termination of Enforcement Action
The FRB has now terminated the enforcement action against Marblehead Bancorp and Marblehead Bank. The bank has taken steps to improve its BSA compliance program and has paid the civil money penalty. The FRB believes that the bank is now in compliance with the BSA.
Conclusion
The FRB’s enforcement action against Marblehead Bancorp and Marblehead Bank is a reminder of the importance of BSA compliance. Banks must take steps to implement effective BSA compliance programs to prevent money laundering and other financial crimes.
Federal Reserve Board announces termination of enforcement action with Marblehead Bancorp and Marblehead Bank
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