The Federal Reserve Acts on BSA Failures Related to PPP Loan Fraud
On January 24, 2023, the Federal Reserve Board (“FRB”) assessed a second-tier[1] civil penalty of $2.3 million against New York-based Popular Bank (or the “Bank”) for unsafe and unsound practices related to six Paycheck Protection Program (“PPP”) loans. According to the FRB, the Bank processed and funded these loans despite detecting significant indicia of fraud……