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South Dakota bank to pay $10 million for lapses that included potential terrorism financing

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A federal banking regulator on Friday issued a $10 million penalty to South Dakota-based TCF National Bank for anti-money laundering lapses that allegedly included failures to make timely reports of possible money laundering and terrorism financing activity.   When announcing the penalty, the Office of the Comptroller of the Currency (OCC) said that between November 2008 and July 2010, the bank late-filed more than 2,300 reports of suspicious activity.    Most of the transactions in question "consisted of cash transactions indicative of structuring, wire transfers where the source and purpose of the funds was unknown, and other activity out of the ordinary for the particular customer being investigated," a consent order issued by the OCC states.    It added, however, that in a 13 instances the bank's reports "failed to adequately explain or identify potential terrorist financing."       Specifically, the "terrorist financing" box on the suspicious activity

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