TCF National Bank to pay $10 million penalty

TCF National Bank to pay $10 million penalty for reporting issue

Associated Press

WAYZATA, Minn. (AP) -- TCF National Bank said Friday it will pay a $10 million penalty to resolve a regulatory reporting issue with the Office of the Comptroller of the Currency.

The regional bank, owned by TCF Financial Corp., failed several years ago to file a regulatory report on time that noted suspicious activity as required under the Bank Secrecy Act, or BSA. A follow up by the OCC found 13 instances of the bank failing to properly file reports detailing transactions considered to be of note for possible ties to terrorist financing.

TCF said the transactions were determined to not be linked to terrorist activity but it faces a penalty, amounting to 6 cents per share in the fourth quarter, for the reporting issue. The bank said it believes that this settlement, along with comprehensive changes it has made to improve its BSA compliance program, mark a significant step toward resolving the consent order filed in 2010.

The company said it has enhanced training and improved its screening system to strengthen its BSA compliance program, which is aimed at monitoring, detecting and reporting suspicious activities, as well as its other legal and regulatory requirements.

TCF is based in Wayzata, Minn. and has an estimated $17.9 billion in assets. The company operates nearly 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota.

Shares of the company increased 5 cents to close at $13.09 Friday, following broader market trends.

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