Pamrapo, U.S. Attorney for New Jersey and Department of Justice Resolve Investigation Into Pamrapo Savings Bank, S.L.A.
30 March 2010 - 9:00AM
Marketwired
Pamrapo Bancorp, Inc. (NASDAQ: PBCI) today reported that its
subsidiary, Pamrapo Savings Bank, S.L.A. (the "Bank"), entered into
a plea agreement with the United States Attorney's Office for the
District of New Jersey and the U.S. Department of Justice
(collectively, the "United States") to resolve a previously
disclosed investigation into Pamrapo Savings Bank, S.L.A.'s Bank
Secrecy Act/Anti-Money Laundering ("BSA/AML") compliance program.
The plea agreement was approved by the Bank and the United States,
and was accepted today by the Honorable Garrett E. Brown. Jr.,
Senior District Judge, United States District Court for New Jersey.
The Bank said today that it remains committed to achieving an
effective and substantial BSA/AML program.
Under the agreement, the Bank pleaded guilty to a criminal
information charging it with a single count of conspiracy to fail
to file Currency Transaction Reports and Suspicious Activity
Reports and to fail to establish an adequate anti-money laundering
program as required by the Bank Secrecy Act and its implementing
regulations. The agreement also requires the Bank to forfeit $5
million to the United States. This amount is consistent with what
the Company previously disclosed to its stockholders.
As set forth in the criminal information, the specific conduct
supporting the criminal charges generally took place during the
period 2005 to 2007 and substantially pertains to actions of one
individual identified in the information by the initials "R.P."
According to the terms of the plea, the United States has agreed
that it will not bring any additional criminal charges against the
Bank in connection with the criminal conduct alleged in the
Information. The agreement reflects that the Bank has fully
cooperated with the criminal investigation. The Bank continues to
cooperate fully with the criminal investigation.
Separately, the Bank agreed to a consent order and payment of a
civil money penalty of $5 million assessed concurrently by the
Office of Thrift Supervision (OTS) relating to the Bank's BSA/AML
compliance controls. The penalty does not require a separate
payment to the OTS or United States from the amount forfeited
pursuant to the agreement with the DOJ.
The agreements with the United States and the OTS do not affect
the Bank's customer funds or its FDIC insurance. After giving
effect to the forfeiture and penalties, Pamrapo Bancorp and the
Bank will continue to have capital levels above all bank regulatory
capital requirements for "well capitalized" status. A reserve for
the forfeiture and the concurrent OTS civil money penalty was
previously established by the Bank. Pamrapo Bancorp does not
anticipate these agreements will affect its previously disclosed
merger with BCB Bancorp, Inc.
Finally, the Bank has not yet entered into a consent order with
the Financial Crimes Network (FinCEN), but anticipates it will do
so soon.
Pamrapo Bancorp, Inc. is a holding company whose principal
subsidiary, Pamrapo Savings Bank, S.L.A., operates ten branch
offices in Bayonne, Jersey City, Hoboken, and Monroe, New
Jersey.
Forward-Looking Statements
This press release may include certain forward-looking
statements based on current management expectations. The actual
results of Pamrapo Bancorp, Inc. (the "Company") could differ
materially from those management expectations. Factors that could
cause future results to vary from current management expectations
include, but are not limited to, general economic conditions,
legislative and regulatory changes, monetary and fiscal policies of
the federal government, changes in tax policies, rates and
regulations of federal, state and local tax authorities, changes in
interest rates, deposit flows, the cost of funds, demand for loan
products, demand for financial services, competition, changes in
the quality or composition of loan and investment portfolios of
Pamrapo Savings Bank, S.L.A., the Company's wholly-owned
subsidiary, changes in accounting principles, policies or
guidelines, and other economic, competitive, governmental and
technological factors affecting the Company's operations, markets,
products, services and prices. The Company wishes to caution
readers not to place undue reliance on any such forward-looking
statements, which speak only as of the date made. The Company
undertakes no obligation to publicly release the result of any
revisions that may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements
or to reflect the occurrence of anticipated or unanticipated
events.
CONTACT Robert A. Hughes Investor Relations 201-339-4600
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