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Bank Fined for Violations of Currency Law

October 12, 1985|Associated Press

WASHINGTON — The Treasury Department announced Friday that Riggs National Bank of the District of Columbia had agreed to pay a $269,750 civil penalty for failing to report large currency transactions.

Officials said that Riggs, the largest bank in Washington, had committed 1,226 reporting violations from 1980 to 1985. The bank could have faced a maximum fine of $1.23 million--$1,000 for each violation.

Riggs became the sixth bank this year to pay penalties for failing to comply with the Bank Secrecy Act, which requires banks to report all cash transactions of $10,000 or more.

In August, the department imposed a record $2.25 million in penalties against Crocker National Bank of San Francisco for failing to report almost $4 billion in cash transactions.

Reported Voluntarily

David D. Queen, acting assistant Treasury secretary for enforcement, said that Riggs had voluntarily come forward to report its violations, one of 60 financial institutions to do so this year. Most of the other institutions are still under investigation, officials said.

Queen said the department had no evidence that Riggs had knowingly engaged in money laundering or other criminal behavior and that the bank's current management had instituted procedures to make sure future reports are filed correctly.

The law is viewed as an enforcement tool in investigations involving corruption, drug deals and organized crime.

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