Federal Reserve Board announces it has fined Popular Bank $2.3 million for processing six Paycheck Protection Program (PPP) loans despite having detected that the loan applications contained significa (2023-01-24)
Summary
A press release of the Board of Governors of the Federal Reserve System dated January 24, 2023. It announces that the Board has fined Popular Bank, of New York, New York, $2.3 million for processing six Paycheck Protection Program (PPP) loans despite having detected that the applications contained significant indications of potential fraud, and for failing to report the potential fraud in a timely manner. The release states that the six loans totaled approximately $1.1 million. According to the Board, lenders were required to follow their anti-money laundering policies, and Popular Bank's conduct violated those policies and constituted unsafe or unsound banking practices.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Board of Governors of the Federal Reserve System Press Release January 24, 2023 Federal Reserve Board announces it has fined Popular Bank $2.3 million for processing six Paycheck Protection Program (PPP) loans despite having detected that the loan applications contained significant indications of potential fraud For release at 11:00 a.m. EST The Federal Reserve Board on Tuesday announced that it has fined Popular Bank, of New York, New York, $2.3 million for processing six Paycheck Protection Program (PPP) loans despite having detected that the loan applications contained significant indications of potential fraud and for failing to report the potential fraud in a timely manner. The six loans totaled approximately $1.1 million. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Small Business Administration-approved lenders like Popular Bank were allowed to provide PPP loans to qualified small businesses negatively impacted by the COVID-19 pandemic, but were required to follow their anti-money laundering policies. Popular Bank's processing of potentially fraudulent PPP loans and failure to report the potential fraud in a timely manner violated these policies and constituted unsafe or unsound banking practices. For media inquiries, please email [email protected] or call 202-452-2955. Last Update: January 24, 2023
File and source
- File
- FED_press_enforcement20230124a.html
- Size
- 83,099 bytes
- SHA-256
- 16b03d36f3443c826bb868df10f0a5b1b2e39e5f1828296281d48cac85508b96
- Original
- www.federalreserve.gov