§ 1772d. — Forfeiture of organization certificate for money laundering or cash transaction reporting offenses.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1772d]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1772d. Forfeiture of organization certificate for money
laundering or cash transaction reporting offenses
(a) Forfeiture of franchise for money laundering or cash transaction
reporting offenses
(1) Conviction of title 18 offenses
(A) Duty to notify
If a credit union has been convicted of any criminal offense
under section 1956 or 1957 of title 18, the Attorney General
shall provide to the Board a written notification of the
conviction and shall include a certified copy of the order of
conviction from the court rendering the decision.
(B) Notice of termination; pretermination hearing
After receiving written notification from the Attorney
General of such a conviction, the Board shall issue to such
credit union a notice of its intention to terminate all rights,
privileges, and franchises of the credit union and schedule a
pretermination hearing.
(2) Conviction of title 31 offenses
If a credit union is convicted of any criminal offense under
section 5322 or 5324 of title 31 after receiving written
notification from the Attorney General, the Board may issue to such
credit union a notice of its intention to terminate all rights,
privileges, and franchises of the credit union and schedule a
pretermination hearing.
(3) Judicial review
Section 1786(j) of this title shall apply to any proceeding
under this section.
(b) Factors to be considered
In determining whether a franchise shall be forfeited under
subsection (a) of this section, the Board shall take into account the
following factors:
(1) The extent to which directors, committee members, or senior
executive officers (as defined by the Board in regulations which the
Board shall prescribe) of the credit union knew of, or were involved
in, the commission of the money laundering offense of which the
credit union was found guilty.
(2) The extent to which the offense occurred despite the
existence of policies and procedures within the credit union which
were designed to prevent the occurrence of any such offense.
(3) The extent to which the credit union has fully cooperated
with law enforcement authorities with respect to the investigation
of the money laundering offense of which the credit union was found
guilty.
(4) The extent to which the credit union has implemented
additional internal controls (since the commission of the offense of
which the credit union was found guilty) to prevent the occurrence
of any other money laundering offense.
(5) The extent to which the interest of the local community in
having adequate deposit and credit services available would be
threatened by the forfeiture of the franchise.
(c) Successor liability
This section shall not apply to a successor to the interests of, or
a person who acquires, a credit union that violated a provision of law
described in subsection (a) of this section, if the successor succeeds
to the interests of the violator, or the acquisition is made, in good
faith and not for purposes of evading this section or regulations
prescribed under this section.
(June 26, 1934, ch. 750, title I, Sec. 131, as added Pub. L. 102-550,
title XV, Sec. 1502(c), Oct. 28, 1992, 106 Stat. 4047; amended Pub. L.
103-325, title IV, Sec. 411(c)(2)(B), Sept. 23, 1994, 108 Stat. 2253.)
Amendments
1994--Subsec. (a)(2). Pub. L. 103-325 substituted ``section 5322 or
5324 of title 31'' for ``section 5322 of title 31''.
