Feds lift sanctions against Gibraltar
A federal consent order has been lifted from a Coral Gables-based bank that officials said failed to report $558 million in suspicious financial transactions between 2009 and 2013.
Gibraltar Private Bank and Trust Company on Wednesday announced it is no longer under the consent order imposed in 2014 by the Office of the Comptroller of the Currency.
The order was imposed after federal regulators said the bank failed to detect and report at least 120 suspicious transactions totaling nearly $558 million. Monitoring and reporting deficiencies also delayed the bank’s suspicious activity reporting regarding accounts related to a $1.2 billion Ponzi scheme led by former Fort Lauderdalebased attorney Scott Rothstein.
Rothstein was convicted in 2010 and sentenced to 50 years in federal prison.
In 2016, Gibraltar was fined $6.5 million for violating federal antimoney laundering laws. According to the Miami Herald, the bank also paid $7.5 million to victims of Rothstein’s Ponzi scheme. The consent order required the bank to develop a strategic plan to monitor and report suspicious or large currency transactions, and to submit reports onthe progress of that plan.
In a news release, Adolfo Henriques, Gibraltar’s chairman of the board, praised the company’s efforts to develop corrective actions while still focusing on the bank’s core business.
“This achievement is the result of our team’s tireless efforts to build a strong risk management organization, create a culture of compliance and strengthen the balance sheet,” Henriques said.
Gibraltar reported positive earnings for 2013, 2014 and 2015, the release said, as
well as net income of $1.1 million for the first quarter of 2017.
In the same release, Gibraltar CEO Angel Medina said, “We will continue
to improve operating efficiencies through full utilization of technology, and we will continue our focus on enhancing the wealth and well-being of our clients and their families.”
Gibraltar’s website lists bank locations in downtown Miami, South Miami,
Fort Lauderdale, Naples, Miami Beach, Manhattan and Key Largo, in addition to Coral Gables.