Insider Activities

Compliance Risk

A bank’s board and management are responsible for ensuring that the bank complies with laws, regulations, prescribed practices, and ethical standards. Noncompliance with these requirements or safety and soundness standards can expose the bank and its insiders to serious consequences, including enforcement action. An insider who, knowingly or unknowingly, violates any banking law or regulation, engages in an unsafe or unsound banking practice, or breaches a fiduciary duty may be subject to civil money penalties and removal from banking, and may be held personally liable for any loss incurred by the bank due to such activity.

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