Gibraltar Private Bank & Trust is under federal investigation for possible violations of the Bank Secrecy Act and related anti-money laundering requirements.
“The Bank cannot at this time predict the results of such investigations, whether penalties or fines will be sought, and, if so, the amounts of any proposed penalties or fines,” the bank wrote in an annual report to its shareholders released March 19.
The U.S. Attorney’s Office and the Department of Justice’s Asset Forfeiture and Money Laundering Section are handling the investigation, according to the report. Sarah Schall, a spokeswoman for the U.S. Attorney’s Office, said she could not confirm or deny the existence of an investigation into Gibraltar.
The South Florida Business Journal first reported the news.
Previously, Gibraltar paid $65 million in a settlement to victims of Ponzi schemer Scott Rothstein, who used Gibraltar and TD Bank to hold trust accounts for his clients.
It was unclear when the violations at the center of the new investigation occurred. Gibraltar brought in a new management team in 2012, including CEO Adolfo Henriques, a well-respected local banker.
Henriques and Gibraltar — which largely deals with private wealth management for the rich— did not respond to requests for comment.
Banks in South Florida are often the target of regulatory actions over money laundering, said Ken Thomas, a local banking consultant. That’s in part because of Miami’s connection to foreign wealth and because of its historical, Cocaine Cowboy-era ties to the drug trade.