The Federal Reserve Board on Monday issued a consent cease and desist order and assessed a $975,000 civil money penalty against Banco Espírito Santo S.A. (BES), Lisbon, Portugal, and its affiliate in the United States, Espírito Santo e Comercial de Lisboa, Inc., Newark, New Jersey (ESCLINC). ESCLINC is a money transmitter primarily serving the Portuguese immigrant community with offices in Rhode Island, New Jersey, and Connecticut. The order resolves allegations that BES, without required notice or approval under the International Banking Act, operated representative offices on the premises of ESCLINC in the United States.
BES and ESCLINC have previously consented to enforcement actions brought by the Securities and Exchange Commission; the State of Rhode Island and Providence Plantations Department of Business Regulation; the State of Connecticut Department of Banking; the Secretary of State of the Commonwealth of Massachusetts, the New Jersey Division of Consumer Affairs Bureau of Securities; and the Attorney General of the State of New York, Investor Protection Bureau, with respect to the sale of unregistered securities to customers of BES and ESCLINC.
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