The U.S. Department of Justice entered into a non-prosecution agreement with EagleBank and its parent, Eagle Bancorp Inc., under which the bank will pay more than USD 9.7 million to resolve an investigation into Bank Secrecy Act violations. EagleBank admitted that, from 2010 to 2021, it willfully failed to establish an anti-money laundering and countering the financing of terrorism program and allowed two customers, a father and son, to operate a check kiting scheme through its accounts for more than a decade. According to the agreement, the father was a friend and business partner of EagleBank’s former chairman and chief executive, who resigned in 2019, and senior bank executives repeatedly overrode compliance personnel’s efforts to close the accounts and stop the conduct. The bank’s facilitation of the scheme caused nearly USD 6.3 million in losses to another financial institution. The monetary resolution consists of a USD 9,057,821.62 fine and USD 736,515 in forfeiture, representing EagleBank’s proceeds from overdraft fees on the accounts involved. EagleBank also agreed to take additional remedial measures to strengthen its AML/CFT program, cooperate with the Department’s investigation, and report any violations of federal criminal law to the Department.
U.S. Department of Justice2026-06-30
U.S. Department of Justice reaches non-prosecution agreement with EagleBank over Bank Secrecy Act failures and $9.7 million payment
The U.S. Department of Justice entered a non-prosecution agreement with EagleBank and its parent to resolve Bank Secrecy Act violations for more than USD 9.7 million. EagleBank admitted it willfully failed to maintain an AML/CFT program from 2010 to 2021 and allowed a father and son to run a long-running check kiting scheme after executives overrode compliance staff. The bank also agreed to remediation, cooperation, and reporting obligations.