Small Business Bank in Kan. receives new Fed C&D order

The Federal Reserve has issued a new cease-and-desist order to Small Business Bank in Lenexa, Kan.

The Fed said the order resulted from its May examination, which identified “new and continuing deficiencies” in the bank’s Bank Secrecy Act and anti-money laundering risk management and compliance.

Small Business Bank, a unit of Gardner Bancshares, had already been operating under a 2023 C&D order that requires it to address BSA and AML compliance and issues tied to staffing, internal controls, credit risk management, and information security.

The previous order required Gardner and its bank to seek regulatory approval before declaring or paying dividends. The board was required to provide written plans for improving issues such as IT security, liquidity management and BSA compliance. The bank was also instructed to hire a third party to assist in the process.