Federal Reserve fines bank over AML breaches on Covid-19 loans

Popular Bank allegedly processed six coronavirus-era loans with significant signs of fraud

Financial research

The US Federal Reserve Board announced it had fined Popular Bank $2.3 million US dollars on January 24, for failing to follow anti-money laundering policies.

The Fed said Popular Bank, based in New York City, processed six loans regardless of knowledge of “significant indications of potential fraud”.

The six loans, made under a law allowing emergency loans to small businesses during the Covid-19 pandemic, were for a cumulative $1.1 million dollars.

The bank suffered a loss with respect to

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