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# NYDFS Issues Consent Order to Piermont Bank Over BSA Violations and Unsafe Practices
- URL: https://www.theglobalbanker.com/nydfs-consent-order-piermont-bank-bsa-violations-unsafe-practices-2024/
- Published: 2024-02-23T17:59:00.000Z
- Updated: 2026-10-02T12:53:56.000Z
- Description: New York's DFS issued a consent order against Piermont Bank on 23 February 2024 for unsafe banking practices and Bank Secrecy Act violations found in DFS and FDIC examinations.
- Author: TGB Editorial Team
- Tags: Regulations, Americas, #archive

The New York State Department of Financial Services issued a consent order against Piermont Bank on 23 February 2024, following a joint safety and soundness examination by the DFS and the Federal Deposit Insurance Corporation in 2022 and consumer compliance examinations by the two regulators in 2023 that identified unsafe and unsound banking practices alongside violations of the Bank Secrecy Act. The order subjects the New York State chartered commercial bank to a structured remediation programme with specified timelines for corrective action across multiple areas of its compliance and governance infrastructure.

Piermont is a digitally focused commercial bank that has concentrated its lending and deposit services on small and medium-sized enterprises. 

#### CONTROL WEAKNESSES AND AML FAILURES

The DFS examinations found that Piermont lacked adequate internal controls proportionate to its size and operational complexity, with particular weaknesses in board-level oversight of the bank's compliance function. The order found violations of the Bank Secrecy Act and requires the bank to review and revise its anti-money-laundering and countering-the-financing-of-terrorism programme, including its systems for monitoring and reporting suspicious activity and its customer due diligence procedures.

#### REMEDIATION TIMELINES AND REQUIREMENTS

The consent order required Piermont to overhaul its AML and CFT programme, revise its money-laundering and terrorist-financing risk assessment, strengthen its third-party relationship management programme, and improve board governance structures. Remediation timelines ranging from 30 to 180 days were specified for different elements of the corrective action plan.