PUBLIC LAW 102-550—OCT. 28, 1992

106 STAT. 4049

"(ii) NOTICE OF TERMINATION; PRETERMINATION
HEARING.—After receipt of written notification from
the Attorney General by the Corporation of such a
conviction, the Board of Directors shall issue to the
insured depository institution a notice of its intention
to terminate the insured status of the insured deposi-
tory institution and schedule a hearing on the matter,
which shall be conducted in all respects as a termi-
nation hearing pursuant to paragraphs (3) through
(5) of subsection (a).

"(B) CONVICTION OF TITLE 31 OFFENSES.—If an insured
State depository institution is convicted of any criminal
offense under section 5322 of title 31, United States Code,
after receipt of written notification from the Attorney Gen-
eral by the Corporation, the Board of Directors may initiate
proceedings to terminate the insured status of the insured
depository institution in the manner described in subpara-
graph (A).

"(C) NOTICE TO STATE SUPERVISOR.—The Corporation
shall simultaneously transmit a copy of any notice issued
under this paragraph to the appropriate State financial
institutions supervisor.

"(2) FACTORS TO BE CONSIDERED.—In determining whether
to terminate insurance under paragraph (1), the Board of Direc-
tors shall take into account the following factors:

"(A) The extent to which directors or senior executive
officers of the depository institution knew of, or were
involved in, the commission of the money laundering
offense of which the institution was found guilty.

"(B) The extent to which the offense occurred despite
the existence of policies and procedures within the deposi-
tory institution which were designed to prevent the occur-
rence of any such offense.

"(C) The extent to which the depository institution
has fully cooperated with law enforcement authorities with
respect to the investigation of the money laundering offense
of which the institution was found guilty.

"(D) The extent to which the depository institution
has implemented additional internal controls (since the
commission of the offense of which the depository institu-
tion was found guilty) to prevent the occurrence of any
other money laundering offense.

"(E) The extent to which the interest of the local
community in having adequate deposit and credit services
available would be threatened by the termination of insur-
ance.

"(3) NOTICE TO STATE BANKING SUPERVISOR AND PUBLIC.—
When the order to terminate insured status initiated pursuant
to this subsection is final, the Board of Directors shall—

"(A) notify the State banking supervisor of any State
depository institution described in paragraph (1) and the
Office of Thrift Supervision, where appropriate, at least
10 days prior to the effective date of tne order of termi-
nation of the insured status of such depository institution,
including a State branch of a foreign bank; and

"(B) publish notice of the termination of the insured
status of the depository institution in the Federal Register.

Federal

Register,

publication.