According to DOJ, EagleBank admitted it willfully failed to maintain an adequate AML/CFT program between 2010 and 2021 and allowed two customers, a father and son, to run a check-kiting scheme through bank accounts for more than a decade. The department said senior executives repeatedly overrode compliance staff who wanted the accounts closed.

DOJ said the scheme caused almost $6.3 million in losses to another financial institution. The deal includes a fine, forfeiture, remedial AML steps, cooperation, and reporting obligations, but not a criminal conviction.

For readers, the broader takeaway is simple: federal anti-money-laundering rules apply to community banks too, and repeated internal warnings are not a safe harbor when suspicious activity keeps going.

Sources

• U.S. Department of Justice, Criminal Division press release
• Washington Business Journal report on EagleBank settlement
• MLex follow-up on EagleBank Bank Secrecy Act probe
• Law360 report on DOJ non-prosecution deal