On April 2, 2012, the Board of Governors of the Federal Reserve System (“Board”) issued a Cease and Desist Order (the “Order”) and assessed a $975,000 Civil Money Penalty against Banco Espírito Santo S.A. (“BES”), Lisbon, Portugal, and its affiliate in the United States, Espírito Santo e Comercial de Lisboa, Inc., Newark, New Jersey (“ESCLINC”).
ESCLINC is a money transmitter with offices in Rhode Island, New Jersey, and Connecticut. The Order resolves allegations that BES, without required notice or approval under the International Banking Act, 12 USC §3101(7) (“IBA”), operated representative offices on the premises of ESCLINC in the United States in violation of the IBA.
The Order requires BES to submit to the Board within 90 days of the Order an acceptable Compliance program to ensure BES’ compliance with all applicable banking laws of the United States.
According to the Board, BES and ESCLINC have previously consented to enforcement actions brought by the Securities and Exchange Commission, the State of Rhode Island and Providence Plantations Department of Business Regulation, the State of Connecticut Department of Banking, the Secretary of State of the Commonwealth of Massachusetts, the New Jersey Division of Consumer Affairs Bureau of Securities, and the Attorney General of the State of New York, Investor Protection Bureau, with respect to the sale of unregistered securities to customers of BES and ESCLINC.
Read the complete Order.
This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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