NCJ Number
136583
Journal
Banking Law Journal Volume: 109 Issue: 1 Dated: (January-February 1992) Pages: 28-45
Date Published
1992
Length
18 pages
Annotation
The main criminal and quasi-criminal laws available to Federal prosecutors for the prosecution of abuses in the banking industry are described, using hypothetical examples to show how a bank's actions with respect to regulators, borrowers, depositors, and other banks may result in prosecution under these laws.
Abstract
As a result of the savings and loan bailout, the war on drugs, and other recent events, no sector of American business faces greater exposure to increased criminal enforcement activity over the next several years than the financial services industry. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990 are recent laws related to this issue. These and other laws make possible prosecution for bank bribery, misapplication of funds and embezzlement, false statements, mail and wire fraud, bank fraud, bank larceny, money laundering, aiding and abetting, conspiracy, and obstructing criminal investigations. Prosecution may also be initiated under the Bank Secrecy Act and the Racketeer Influenced and Corrupt Organizations statute. To avoid exposure, banks must establish and closely monitor a compliance program designed to deter and detect any abuses and inquire diligently into the financial status and business activities of significant new depositors. 39 footnotes