Lone Star National Bank
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| Headquarters | McAllen, Texas |
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| Established | 1983 |
| Key People | S. David Deanda, Jr., President and Chief Operating Officer |
| Website | http://www.lonestarnationalbank.com |
Lone Star National Bank is a community bank in with 33[1] locations across South Texas.
Founded in 1983 in Pharr, Texas, Lone Star National Bank expanded with its first banking center in Hidalgo County in 1994.[2] In August 2000, the bank opened another location outside of Hidalgo County in Rio Grande City and opened another banking center in Cameron County in July 2001. In March 2010, Lone Star National Bank expanded to Bexar County and opened doors to a banking center in San Antonio, Texas.[3]
Troubled Condition, Consent Orders & Civil Money Penalty
The Office of the Comptroller of the Currency (OCC) on April 4, 2015, issued a consent order for a $1 million civil money penalty fine against Lone Star National Bank for violating the Bank Secrecy Act (BSA).[4][5][6] The OCC identified BSA and anti-money laundering (AML) deficiencies with Lone Star National Bank's internal controls, independent audit, suspicious activity reporting, and foreign correspondent banking program. The Bank was already under a consent order from 2012 (2012-160) which required Lone Star National Bank to undertake remedial actions with respect to its BSA/AML program.[7]
An additional consent order (2015-029)[8] was issued on March 31, 2015, in regards to serious deficiencies in Lone Star National Bank's lending practices.[9] This consent order designates Lone Star National Bank as being in "troubled condition."[10][11][12]
Drug Cartel Money Laundering Case
Lone Star National Bank is one of several banks that federal prosecutors have alleged were used by corrupt Mexican politicians and business owners to launder drug cartel money in South Texas.
In a 2013 plea hearing of a Mexican businessman who admitted to laundering money, Assistant U.S. Attorney Julie Hampton said some of the bank’s customers “have been identified as politically exposed persons, and there is nothing indicating that Lone Star National Bank conducted additional customer due diligence regarding the tracking of those millions of dollars.”[13]
References
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ San Antonio Business Journal, Lone Star National Bank targets San Antonio in its expansion strategy, February 14, 2010
- ↑ NSIDE SA, A Star On The Rise, May 2011
- ↑ OCC Enforcement Action 2015-028
- ↑ BankersOnline BSA/AML Monetary Penalties List
- ↑ Lone Star National Bank pays $1M Federal Penalty The Monitor
- ↑ OCC Enforcement Action 2012-160
- ↑ OCC Enforcement Action 2015-029
- ↑ Bank Fined $1 Million Dollars KRGV
- ↑ OCC Enforcement Action 2015-029
- ↑ Wall Street Journal, "Texas bank penalized over controls"
- ↑ MySA.com, "Bank regulators sock Lone Star National Bank"
- ↑ Regulators drop hammer on Lone Star National Bank San Antonio Express News
