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UNITED STATES OF AMERICA
BEFORE THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
AND
DEPARTMENT OF BANKING AND FINANCE
OF THE STATE OF GEORGIA
ATLANTA. GEORGIA
In the Matter of
BROADSTREET, INC.
Atlanta, Georgia
and
AMTRADE INTERNATIONAL
BANK OF GEORGIA
Atlanta, Georgia
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DOCKET NOS. 02-016-B-HC
02-0 16-B-SM
Cease and Desist Order Issued
on Consent Pursuant to the
Federal Deposit Insurance Act,
as Amended
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WHEREAS, the AmTrade International Bank of Georgia, Atlanta, Georgia (the
"Bank"), a state chartered bank that is a member of the Federal Reserve System, is in the
process of voluntarily liquidating its business and has filed a Plan of Voluntary
Dissolution (the "Plan") with the Department of Banking and Finance of the State of
Georgia (the "Department"), pursuant to state law;
WHEREAS, the Department has accepted the Plan, by order dated August 9,
2002 (the "Department's Order"), and the Federal Reserve Bank of Atlanta (the "Reserve
Bank") and the Federal Deposit Insurance Corporation have reviewed the Plan and
acknowledged the Department's Order;
WHEREAS, prior to the issuance of the Department's Order, the Board of
Governors of the Federal Reserve System (the "Board of Governors") issued a Notice of
Charges and of Hearing (the "Notice") and a Temporary Order to Cease and Desist
(the "Temporary Order") against the Bank, on July 1,2002;
WHEREAS, the Bank is a subsidiary of Broadstreet Inc., Atlanta, Georgia
("Broadstreet"), a registered bank holding company;
WHEREAS, the Bank and Broadstreet have since the issuance of the Temporary
Order and the Department's Order taken steps to appoint qualified individuals to oversee
and manage the liquidation of the Bank's business in an orderly manner, and the
shareholders of Broadstreet have provided the Bank with sufficient capital to i k d
outstanding liabilities and have provided a written guarantee to cover other obligations of
the Bank, and
WHEREAS, on
,2002,the boards of directors of
Sentember 10.
Broadstreet and the Bank, at duly constituted meetings, adopted resolutions:
(1)
authorizing and directing Manuel Sicre [title] to enter into this
President of AmTrade I n t ' l Bank of Georgia
Cease and Desist Order (the "Order") on behalf of Broadstreet and the Bank, respectively,
and consenting to compliance with each and every applicable provision of this Order by
Broadstreet and the Bank and their institution-affiliated parties, as defined in
sections 3(u) and 8(b)(3) of the Federal Deposit Insurance Act, as amended (12 U.S.C.
1813(u) and 1818(b)(3)) (the "FDI Act"); and
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(2)
waiving any and all rights that Broadstreet and the Bank may have
pursuant to section 8 of the FDI Act (12 U.S.C. 1818) to: a hearing for the purpose of
taking evidence on any matters set forth in this Order; to judicial review of this Order;
and to challenge or contest, in any manner, the basis, issuance, validity, terms,
effectiveness or enforceability of this Order or any provisions hereof.
NOW, THEREFORE,before the taking of any testimony or adjudication of, or
finding on any issue of fact or law herein or in the Notice, and without this Order
constituting an admission of any allegation made or implied by the Board of Governors
or the Department in connection with this proceeding,
IT IS HEREBY ORDERED that, pursuant to sections 8(b)(l) and (3) of the FDI
Act (12 U.S.C. lS18(b)(l) and (3)) and section 7-1-91 of the Official Code of Georgia
Annotated, Broadstreet, the Bank, and their institution-affiliated parties shall take the
following affirmative actions:
1.
(a)
Broadstreet, the Bank, and each of their institution-affiliated
parties shall, at all times, comply fully with the Plan and the Department's Order.
(b)
The Plan shall not be modified without the prior written approval
of the Reserve Bank and the Department.
2.
(a)
The Bank shall continue to take all steps necessary to ensure that,
to the extent that the Bank continues to provide finds transfer services, all funds transfers
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originated by customers ofthe Bank are transmitted by the Bank and not directly or
indirectly by customers through off-site, customer-controlled terminals. All payment
orders ordered by Bank customers for funds transfers through the Bank shall be placed
through the Bank's wire room by Bank employees, and the Bank shall conduct
appropriate customer due diligence and transaction monitoring.
(b)
The Bank shall not permit customers to transmit funds transfers
directly from remote terminals.
3.
The Bank shall maintain a level of capitalization sufficient to meet the
definition of "adequately capitalized", as set forth in section 208.43 of Regulation H of
the Board of Governors ("Regulation H") (12 C.F.R. 208.43).
4.
(a)
Broadstreet and the Bank shall comply with the notice provisions
of section 32 of the FDI Act (12 U.S.C. 1831i) and Subpart H of Regulation Y of the
Board of Governors in the appointment of directors and senior executive officers and
with the restrictions on indemnification and severance payments of section 18(k) of the
FDI Act (12 U.S.C. 1828) and Part 359 of the Federal Deposit Insurance Corporation's
regulations (12 C.F.R. Part 359).
(b)
The Bank shall not appoint or replace the individuals providing
independent oversight of the Bank without the prior written approval of the Reserve Bank
and the Department.
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5.
(a)
The Bank shall not accept, renew, or rollover any deposits without
the prior written approval of the Reserve Bank and the Department.
(b)
The Bank shall not make or renew any extensions of credit,
including, but not limited to, the payment of overdrafts, without the prior written
approval of the Reserve Bank and the Department.
6.
(a)
The Bank shall make all arrangements necessary to ensure that all
records relating to the Bank's compliance with the Currency and Foreign Transactions
et q.
and
)the regulations promulgated thereunder by
Reporting Act (31 U.S.C. 53 11 the U.S. Department of the Treasury (31 C.F.R. 103.11 et q.
(collectively
)
referred to as
the "Bank Secrecy Act" ("BSA")) are: (i) maintained in accordance with BSA
requirements for the time periods specified in the BSA, (ii) maintained by an independent
agent acceptable to the Reserve Bank and the Department, and (iii) made available to law
enforcement and bank supervisory authorities in accordance with applicable law.
(b)
Records covered by this paragraph shall include, at a minimum, all
supplementary information for suspiciousactivity reports filed by the Bank (as required
by 31 C.F.R. 103.18 and 12 C.F.R. 208.62), all records ofwire transfers (as required by
3 1 C.F.R. 103.33), and all records of issuance or sale of certain monetary instruments (as
required by 31 C.F.R. 103.29).
(c)
The Bank shall fully comply with all provisions of the BSA and
maintain an effective BSA compliance program as required by section 208.63 of
Regulation H (12 C.F.R. 208.63).
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7.
(a)
The Bank shall make all arrangements necessary to ensure that all
records pertaining to the Bank's compliance with the BSA compliance program
requirements of section 208.63 of Regulation H (12 C.F.R. 208.63) are (i) maintained for
a minimum of five years by an independent agent acceptable to the Reserve Bank and the
Department, and (ii) made available to law enforcement and bank supervisory authorities
in accordance with applicable law.
(b)
Records covered by this paragraph shall include, at a minimum, all
records pertaining to the Bank's BSA compliance program, including the Bank's policies
and procedures for compliance with the BSA, all records of BSA training provided to
Bank personnel, and all records of independent testing for BSA compliance by the Bank.
8.
(a)
The Bank shall continue to retain the services of a qualified
independent firm to complete a comprehensive review (the "Review") of the Bank's antimoney laundering compliance. The comprehensive review shall include, at a minimum:
(i)
A forensic review of account records from June 30,2001 to
the present to determine whether suspicious activity involving accounts or transactions at,
by, or through the Bank was properly identified and reported by the Bank in accordance
with applicable regulations; and
(ii)
A forensic review of account records from June 30,2001 to
the present to evaluate compliance with the currency transaction reporting requirements
of the BSA.
(b)
The Bank shall forward the written results of the Review
to the Reserve Bank and the Department.
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9.
The provisions of this Order shall be binding upon Broadstreet, the Bank,
and each of their institution-affiliated parties, in their capacities as such, and their
successors and assigns.
10.
Each provision of this Order shall remain effective and enforceable until
stayed, modified, terminated or suspended by the Board of Governors and the
Department.
11.
The provisions of this Order shall not bar, estop, or otherwise prevent the
Board of Governors, the Reserve Bank,or the Department, or any other federal or state
agency from taking any other action affecting Broadstreet or the Bank or any of their
current or former institution-affiliated parties.
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The proceeding initiated by the Notice is concluded by the issuance of this
12.
Order and the Temporary Order is terminated by the issuance of this Order.
By order of the Board of Governors of the Federal Reserve System and the
Department of Banking and Finance of the State of Georgia effective thi&)aay
of
G&&-,2002.
GEORGIA DEPARTMENT OF
BANKING AND FINANCE
‘s\
By:
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3 G. 5 ? &
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
By:
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‘David G. Sonell
Acting Commissioner
/Sender J. ~ & dn
Secret& of the Board
L/
ational Bank of Georgia
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