South Shore Bank in Weymouth has been slapped by federal regulators with a $71,000 civil penalty for flood insurance regulation violations.
The Federal Reserve Bank announced the enforcement action on Thursday morning, saying it was “in connection with the Bank’s pattern or practice of violations” of regulations implementing the National Flood Insurance Act.
The act requires that civil penalties be imposed of up to $2,000 for each violation. The assessment order was issued by the Federal Reserve Board of Governors.
The penalty revenues will eventually be deposited into the National Flood Mitigation Fund, according to the order, which was signed by South Shore Bank President James Dunphy.
