On March 1, 2017, the Department of Justice (DOJ) announced a forfeiture action on First National Bank of Williamson in the amount of $1.36 million related to violations under the Bank Secrecy Act (BSA). The action concerned structuring transactions that occurred between April 2006 and November 2008. The subject customer admitted in court that the transactions were intended to avoid reporting requirements and to evade taxes as a part of a wider scheme against a workers’ compensation provider. The bank – a community bank with three branches serving Southern West Virginia and Eastern Kentucky – permitted $1.36 million of withdrawals in exact amounts of $10 thousand while failing to properly report the transactions as required under the BSA.
