Digital money problems for Schwab

[George at Orwellian.Org]

Snipped.

http://interactive.wsj.com/articles/SB995029046412389105.htm
#    
#    July 13, 2001 
#    
#    Federal and State Regulators Fine
#    Charles Schwab Unit $10 Million
#    
#    By PAUL BECKETT
#    Staff Reporter of THE WALL STREET JOURNAL
#    
#    Federal and state bank regulators fined Charles Schwab Corp.'s 
#    U.S. Trust unit $10 million -- one of the largest fines levied 
#    against a U.S. bank -- as part of a settlement of allegations 
#    that its internal controls and record-keeping were inadequate.
#    
#    The hefty fine, $5 million of which was levied by the Federal 
#    Reserve, $5 million by the New York State Banking Department, 
#    was accompanied by a cease-and-desist order, the second-highest 
#    level of bank enforcement action short of a license revocation.
#    
#    People familiar with the matter say that some of the alleged 
#    offenses that caused the severe regulatory action concerned the 
#    bank's failure to report to the federal government currency 
#    transactions over $10,000, as required by a federal law designed 
#    to aid in combating money-laundering.
#    
#    The bank also failed to report transactions that appeared designed 
#    to skirt those thresholds, for instance, when a customer either 
#    deposited or withdrew an amount just shy of $10,000, these people 
#    said. One person familiar with the matter said there were such 
#    transactions for $9,999. Another scenario involved customers 
#    making a series of withdrawals close together that totaled more 
#    than $10,000 but were not in keeping with the client's normal 
#    pattern of activity, people familiar with the matter say.