New York-based Metropolitan Commercial Bank (MCB) was assessed nearly $30 million in penalties by federal and state banking regulators for failing to properly oversee a third-party program manager whose prepaid cards were a popular target of fraud during the Covid-19 pandemic.
MCB agreed to pay $15 million as part of a settlement with the New York State Department of Financial Services (NYDFS) and was fined an additional $14.5 million by the Federal Reserve Board, the agencies announced Thursday. The regulators faulted the bank for deficient third-party risk management (TPRM) practices and other Bank Secrecy Act (BSA) violations.
