FDIC State-Member Bank Agrees to Civil Money Penalty to Resolve Flood Insurance Enforcement Action by the Federal Reserve

On May 12, the Board of Governors of the Federal Reserve System announced the execution of a settlement in an enforcement action against a state member bank concerning alleged violation of Section 102(f) of the National Flood Insurance Act (NFIA). The settlment noted that where a pattern of practice of violations of the NFIA is found, civil money penalties can be imposed up to $2,000 per violation. To resolve the enforcement action, the bank consented to a civil money penalty of $2,100, without admitting wrongdoing and without any “finding on any issue of fact or law.”