Federal Reserve Board Announces Enforcement Action Against Regional Bank for Alleged Violation of the National Flood Insurance Act

Banking  •  Flood Insurance

On September 22, 2015, the Board of Governors of the Federal Reserve System announced the execution of a settlement in an enforcement action against a regional bank concerning an alleged violation of the National Flood Insurance Act (NFIA), 42 U.S.C. § 4012a(f)(4). ​The Board of Governors asserted that where a pattern or 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 $9,285, without admitting wrongdoing and without any “finding on any issue of fact or law.”

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