Puerto Rico bank to boost anti-money laundering controls in FDIC accord
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| Published on Saturday, February 23, 2008 |
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By Alison Vekshin
WASHINGTON, USA (Bloomberg): Doral Financial Corp., the Puerto Rico bank-holding company rescued from the brink of bankruptcy last year, has agreed to improve its protections against money laundering after a US bank regulator found weaknesses.
The Federal Deposit Insurance Corp. cited Doral Bank, the San Juan-based company's principal subsidiary, for violations that took place starting in 2005, the lender said on Friday in a Business Wire release. The accord with the Washington-based FDIC gives Doral 120 days to make recommended improvements that were not specified in the release.
"The company, along with its board of directors and management, is fully committed to aggressively work to resolve the matters addressed in the order,'' Glen Wakeman, Doral's chief executive officer and president, said in the release.
Federal bank regulators have focused on lenders' programs for preventing money laundering as part of a broader effort to block sources of terrorist funding. The findings against Doral, based on a review conducted through December 2006, predate changes in its management, capitalization and board of directors, the company said in its statement.
Doral in July received a $610 million investment from a group led by Bear Stearns Cos. that enabled it to avoid defaulting on a bond payment. Last month, the company was released from an FDIC order imposed two years ago for accounting and documentation failures involving mortgage transactions. | | | | Reads : 111 |
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