(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.
