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NYDFS 2014 Annual Report

SUMMARY OF MAJOR ENFORCEMENT ACTIONS SINCE AGENCY’S INCEPTION

Date Company Misconduct Monetary Penalty Notable Terms

4/23/2015

Deutsche Bank
(Germany's Largest Bank)

Manipulation of Benchmark Interest Rates, Including LIBOR

$600,000,000

Bank moves to terminate and ban multiple executives who engaged in misconduct; installs independent monitor

3/12/2015

Commerzbank
(Germany's 2nd Largest Bank)

Sanctions/
Anti-Money Laundering Compliance (Iran, Sudan, & Other Sanctioned Clients)

$610,000,000

Bank moves to terminate multiple executives who engaged in misconduct, including the individual serving as the head of regional compliance for the New York branch during relevant period; installs independent monitor

3/11/2015

MoneyMutual
(Payday Loan "Lead Generator")

Marketing Payday Loans in Excess of NY's Interest Rate Caps

$2,100,000

First successful enforcement action nationwide against a payday loan "lead generator;" Montel Williams withdraws endorsement of NY payday loans

12/22/2014

Bank Leumi
(Israel's Largest Bank)

Facilitating Tax Evasion

$130,000,000

Bank moves to terminate three individual senior employees; ban Chief Administrative Officer from compliance activities; install monitor

12/22/2014

Ocwen
(Largest Subprime Mortgage Servicer in the U.S.)

Mortgage Misconduct

$150,000,000

Chairman of Ocwen and related companies steps down; company appoints two independent board members; $10,000 in restitution for each foreclosed New York borrower; access to loan files for all borrowers; continued ban on acquiring mortgage servicing rights; extend monitorship for three years

12/19/2014

Condor Capital
(Subprime Auto Lender)

Consumer Abuses in Subprime Auto Lending

$3,000,000

First state regulator to bring federal suit under new consumer protection authority provided in Dodd-Frank; obtained $8-9 million in restitution for abused consumers; company surrenders license and liquidates

11/18/2014

Bank of Tokyo Mitsubishi II (Japan's Largest Bank)

Deceived NYDFS on Anti-Money Laundering  Consulting Report regarding Iran/Sudan/ Myanmar Transactions

$315,000,000

The additional $315 million penalty was imposed after an original $250 million penalty from June 2013, after NYDFS discovered the bank deceived the Department during the previous settlement negotiations (bringing the total monetary penalty to $565 million). Bank terminates a senior employee and NYDFS bans two additional senior employees from conducting business with New York banks. Independent monitor's term extended an additional 18 months

10/31/2014

AIG

Unlicensed insurance activity; intentional misrepresentations to regulators

$35,000,000

The $35 million penalty is in addition to the $50 million penalty previously imposed on MetLife -- the company to which AIG sold the subsidiaries involved in the misconduct

8/19/2014

Standard Chartered Bank II

Violations of 2012 Consent Order Regarding Anti-money Laundering Compliance

$300,000,000

The additional $300 million penalty was imposed after an original $340 million penalty in August 2012, after NYDFS discovered the Bank violated its consent order (bringing the total monetary penalty to $640 million). The Bank was also required to suspend dollar clearing through its New York Branch for high-risk retail business clients at its SCB Hong Kong subsidiary; exit high-risk client relationships within certain business lines at its branches in the United Arab Emirates; and not accept new dollar-clearing clients or accounts across its operations without prior approval from NYDFS. The term of NYDFS' independent monitor was also extended two years.

8/18/2014

PricewaterhouseCoopers
("Big Four" Auditing & Consulting Firm)

Whitewashing Report to Regulators on Money Laundering at Bank of Tokyo Mitsubishi

$25,000,000

PwC Regulatory Advisory Services unit was banned from regulatory consulting work at NYDFS-regulated institutions for 24 months; PwC claws back compensation for partner involved in the engagement and implements new code of conduct on consulting independence

6/30/2014

BNP Paribas
(France's Largest Bank)

Sanctions/
Anti-Money Laundering Compliance (Sudan; Iran, Cuba)

$2,243,400,000

13 senior employees, including Chief Operating Officer, terminated or separated from Bank; suspend U.S. dollar-clearing operations through its New York Branch or its other U.S. affiliates for one year at BNPP business lines on which the misconduct centered; extend independent monitor's term an additional two years

5/19/2014

Credit Suisse

Facilitating Tax Evasion

$715,000,000

Terminate three senior employees involved in the misconduct; install independent monitor at the Bank for up to two years

3/31/2014

MetLife

Unlicensed Insurance Activity

$50,000,000

NYDFS later imposed an additional $35 million fine on AIG (the company that sold MetLife the subsidiaries involved in this misconduct)

3/17/2014

AXA Equitable

Violating Consumer Protection Laws on Annuity Products

$20,000,000

Largest insurance-related fine in Department history for Insurance Law consumer protection violations

12/11/2014

RBS

Sanctions/
Anti-Money Laundering Compliance (Iran, Sudan, & Other Sanctioned Clients)

$50,000,000

Bank required to terminate four senior employees, including RBS’s Head of Global Banking Services for Asia, Middle East and Africa, and Head of the Money Laundering Prevention Unit for Corporate Markets

 

6/20/2013

Bank of Tokyo Mitsubishi (Japan's Largest Bank)

Sanctions/
Anti-Money Laundering Compliance (Iran, Sudan, & Myanmar)

$250,000,000

Bank later penalized an additional $315 million in November 2014 for deceiving the Department during the course of settlement negotiations

6/18/2013

Deloitte

Whitewashing Report to Regulators on Anti-money Laundering Compliance at Standard Chartered Bank

$10,000,000

First successful enforcement action in the country against a consultant by a bank regulator. Deloitte banned from regulatory consulting work at NYDFS-regulated institutions for 12 months; implements new code of conduct on consulting independence

5/30/2013

American Modern and Group of Smaller Force-placed Insurers

Force-placed Insurance

$1,000,000

Agreements with American Modern and several smaller insurers extended NYDFS force-placed insurance reforms banning kickbacks and other consumer abuses to 100 percent of the New York market

4/18/2013

QBE
(2nd Largest Force-placed Insurer in the U.S.)

Force-placed Insurance Kickbacks; Insurance Law Violations

$10,000,000

Company implements NYDFS force-placed insurance reforms banning kickbacks and other consumer abuses

3/21/2013

Assurant
(Largest Force-placed Insurer in the Country)

Force-placed Insurance Kickbacks; Insurance Law Violations

$14,000,000

Company implements NYDFS force-placed insurance reforms banning kickbacks and other consumer abuses

8/14/2012

Standard Chartered Bank

Sanctions/
Anti-Money Laundering Compliance (Iran & Other Sanctioned Clients)

$340,000,000

Bank subsequently paid an additional $300 million penalty in August 2014 for violating the August 2012 consent order

Updated 05/11/2015

 

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