RBB Bancorp entered into a consent order with regulators requiring the Los Angeles company to improve its compliance with the Bank Secrecy Act and regulations governing anti-money laundering and countering the financing of terrorism.
The Oct. 25 order between the $4.1 billion-asset RBB and the Federal Deposit Insurance Corp. and the California Department of Financial Protection and Innovation requires the bank to comply with all relevant laws and regulations tied to BSA and AML.
The bank, without admitting or denying any BSA violations, agreed to develop, adopt and fully implement effective internal controls and correct an “apparent violation … related to the failure to file suspicious activity reports,” or SARs.
Royal Business Bank must review and enhance its policies and procedures to ensure that SARs are filed within 30 days of identifying a suspect or unusual and suspicious activity. It must also review, enhance and implement a written compliance program to ensure and maintain compliance with AML laws and regulations.
The order also requires the bank to review, enhance and implement “appropriate risk-based policies and procedures for a writing customer due diligence” program. The bank must improve its internal controls, ensure that its AML program is managed by a qualified officer and provide annual training to employees, among other things.