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

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.”

Download PDF