The Board alleges that the bank violated customer identification rules and has identified “deficiencies” in the bank’s third-party risk management with respect to its issuance of prepaid card accounts.
From April to July 2020, the Board says that the bank “received multiple reports indicating widespread fraud” relating to its prepaid card programme, but continued to issue such accounts to applicants whose true identity could not be adequately verified.
“Although MCB took steps to identify and block or close fraudulent accounts during this period, those steps were ineffective,” the Board alleges.
