Bank Alerts

Special Alert SA-2-2006

DATE:	January 19, 2006
TO:	CHIEF EXECUTIVE OFFICER (also of interest to Security Officer)
FROM:	Gloria McVey, Acting Director of Banks
SUBJECT:	Counterfeit Cashier's Checks
Summary:	Counterfeit cashier's checks drawn on American Marine Bank, Bainbridge Island, Washington, are reportedly in circulation.

American Marine Bank, Bainbridge Island, Washington, has contacted the Federal Deposit Insurance Corporation (FDIC) to report that counterfeit checks bearing the institution's name are in circulation.

The counterfeit items display the routing number 125104865, which is assigned to American Marine Bank, and are similar to authentic checks in layout. However, the border on the counterfeit items has rounded corners, while the border on authentic checks has square corners. The counterfeit items display the following security wording in the top border: "This document is printed on white paper with a coloured background. The border contains micro printing." Also, the counterfeit items display security wording in the bottom border concerning artificial watermarks. Authentic checks do not display wording in either border. Authentic checks display a 1-800 telephone number beneath the bank's name in the upper-left corner of the check. Also, authentic checks are printed on a three-part gray herringbone pattern with blue printing. A copy of a counterfeit item and an authentic cashier's check (VOID) are attached for your review.

Any information you have concerning this matter should be brought to the attention of:

Jan Hannon
Senior Vice President
American Marine Bank
249 Winslow Way
Bainbridge Island, Washington 98110
Telephone: (206) 855-8620
Fax: (206) 855-8560
janh@americanmarinebank.com

Information about counterfeit items, cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-4004, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov. Information related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

For your reference, FDIC Special Alerts may be accessed from the FDIC's website site at www.fdic.gov/news/news/SpecialAlert/2006/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.

---

Special Alert SA-51-2004

AmericanWest Bank, Spokane, Washington, has reported to the Federal Deposit Insurance Corporation (FDIC) that counterfeit cashier's checks bearing the institution name "AMERICAWEST BANK, INC" are in circulation.

Counterfeit items are markedly dissimilar to authentic official bank checks and display an incorrect routing number of 125107037. Counterfeit items display the bank name as AMERICAWEST BANK, INC, in the upper-left corner (no "n" at the end of America) and include the wording "Cashier's Check" centered at the top of the check. Authentic checks display the bank logo and correct bank name AmericanWest Bank in the lower-left corner of the check. Copies of a counterfeit check and an authentic official bank check (void) are attached for your review.

Any information you have concerning this matter should be brought to the attention of:

Trish Christenson
Bank Operations Manager
AmericanWest Bank
9506 N. Newport Hwy.
Spokane, Washington 99218
Telephone: (509) 344-5301
Fax: (509) 465-9681
tchristenson@awbank.net

Information about these instruments may be forwarded to the FDIC's Special Activities Section, 550 17th Street, N.W., Room F-4040, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov. Information related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

For your reference, FDIC Special Alerts may be accessed from the FDIC's website at www.fdic.gov/news/news/SpecialAlert/2004/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.

Michael J. Zamorski
Director
Division of Supervision and Consumer Protection

Attachment (not available electronically)

NOTE: As a security precaution, the FDIC does not post to its Web site online copies of fraudulent instruments or copies of the genuine instruments that have been counterfeited. This is to avoid attempts by others to use the electronic versions of these instruments to facilitate additional fraud. Printed copies of fraudulent instruments are mailed with the Special Alert letter to the financial institutions on the letter's distribution list (generally, FDIC-supervised banks – commercial and savings). Printed copies of the Special Alert and its attachment(s) may also be obtained from the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (telephone: 1-877-275-3342 or 202-416-6940; fax: 202-416-2076; or e-mail: publicinfo@fdic.gov).

Distribution: FDIC-Supervised Banks (Commercial and Savings)

---

Special Alert  04-01

Harbor Community Bank, Raymond, Washington, has reported to the State of Washington Department of Financial Institutions that counterfeit cashier's checks drawn on the bank are in circulation. We are aware that these checks are being circulated in the Seattle area, although they may also be in circulation elsewhere.  The counterfeit checks have had various payee names, check numbers, and check amounts; however, the remitter has been the same.  People who try to verify funds by calling the telephone number provided on the counterfeit cashier’s check will reach a message system that sounds as if they have actually reached Harbor Community Bank.  A person representing himself or herself as a Harbor Community Bank employee verifies that the check and funds are good. This individual is not an employee of Harbor Community Bank.  A copy of a counterfeit Harbor Community Bank cashier’s check (void) is attached.

Any information you have about this matter should be brought to the attention of:

Mark Southwick
President
Harbor Community Bank
221 Commercial Street
Post Office Box 552
Raymond, Washington 98577-0552
Telephone: (360) 942-2401
Fax: (360) 942-3785

Information concerning these instruments may be forwarded to the Division of Banks, 150 Israel Road S.W., Tumwater, Washington 98501, or transmitted electronically to banks@dfi.wa.gov.
 

---

Division of Banks Alert

A number of Washington state chartered financial institutions have been cited in recent compliance examinations for violations of the Equal Credit Opportunity Act.  Managements are advised to review Federal Reserve Board Regulation B (Reg. B) 12 C.F.R. Part 202, which implements the Equal Credit Opportunity Act (ECOA).

Reg. B limits when a creditor may seek an applicant’s spouse as a co-signor or guarantor. Managements should review their internal policies and procedures regarding Section 202.7 - Rules concerning extensions of credit. Violations of the Equal Credit Opportunity Act are subject to referral to the United States Department of Justice.

The FDIC issued Financial Institution Letter 09-2002: Guidance on the Spousal Signature Provisions of Regulation B, on February 4, 2002.  The FDIC letter suggests institutions adopt a three-prong approach to ensuring compliance with the spousal signature rules:

A.  Review and revise loan policies and procedures regarding spousal signatures

1. Eliminate loan policies or procedures that are inconsistent with Regulation B’s spousal signature provisions.
2. Expand loan policies and procedures to provide loan staff with specific guidance on state law regarding necessary signatures, particularly in community property states.
3. Create or amend checklists to address when spousal signatures may be obtained in connection with an individual application for credit.

B.  Provide periodic training to both consumer and commercial loan staff

The Regulation B requirements regarding spousal signatures apply to all loans, consumer and commercial

C.  Monitoring and Audits

Incorporate into the bank’s compliance program a check for spousal signature violations.