US DoJ turns EagleBank’s check-kiting failures into a BSA warning, securing a $9.7m resolution after senior executives overrode AML controls

EagleBank admitted that it willfully failed to maintain an effective AML/CFT programme between 2010 and 2021, allowing favoured customers to operate a long-running check-kiting scheme despite repeated internal warnings. DOJ says senior executives overrode compliance staff and ignored red flags, contributing to a $6.3 million loss at another financial institution and leading to a financial penalty, forfeiture and remediation commitments.