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First Bank of Delaware pays stiff $15 million fine for anti-laundering lapses and has charter revoked

Nov 20 2012 Brett Wolf, Compliance Complete

The First Bank of Delaware has agreed to pay more than $15 million for violating anti-money laundering rules by serving third-party payment processors with links to fraudulent internet merchants and telemarketers, federal regulators and the Justice Department announced Monday. The bank's state charter was terminated Friday and some of its assets were acquired by Bryn Mawr Trust Company. "From 2009 to 2011, First Bank of Delaware engaged in a scheme to defraud consumers by originating electronic-payment transactions knowing, or by remaining willfully blind to the fact, that the consumer authorizations … had not been obtained, or had been obtained by dishonest merchants using fraud, trickery, and deceit," a civil complaint filed by federal prosecutors in Pennsylvania on Monday stated. The complaint added that the bank originated more than two million debit transactions totaling more than $100 million "on behalf of third party payment processors in cahoots with" the fraudsters. First

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