Regulatory Roundup

The Federal Reserve issued a consent cease and desist order against Jason Burns, a former president and director of Bank of Eufaula and director of S N B Bancshares, Inc., over alleged unsafe or unsound practices tied to loans and overdrafts for a company owned by a close relative of the bank’s CEO. The order says Burns helped approve more than $5 million in loans, repeatedly approved or waived overdrafts exceeding $1 million, and produced board minutes that falsely reflected approvals, including for a Main Street Lending Program loan, resulting in more than $3.5 million in bank losses and about $1.88 million in losses to a Federal Reserve special purpose vehicle.

Read the full notice here.

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The Federal Reserve Board announced on June 25, 2026, the termination of its 2024 cease and desist order against Jiko Group, Inc., a San Francisco-based bank holding company. For ACFCS members, the action is a reminder that enforcement orders do not end with issuance: institutions must demonstrate sustained remediation around governance, financial condition, capital planning, liquidity, and related risk management before regulators will formally close the supervisory chapter.

Read the full notice here.

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The Hong Kong Interbank Clearing Limited (HKICL) has recently noted a fraudulent website at hxxps[:]//hkfps[.]life purported to be from the HKICL. The fraudulent website imitates as “Buyer Online Protection” to provide services including 1) refund to buyer, 2) unauthorised online transaction reporting, and 3) online transaction support, for online transaction over FPS payment.

Read the full notice here.

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The Hong Kong Interbank Clearing Limited (HKICL) has recently noted a fraudulent website at hxxps[:]//hkfps[.]life purported to be from the HKICL. The fraudulent website imitates as “Buyer Online Protection” to provide services including 1) refund to buyer, 2) unauthorised online transaction reporting, and 3) online transaction support, for online transaction over FPS payment.

Read the full notice here.

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Treasury announced coordinated actions to further disrupt the Prince Group Transnational Criminal Organization, sanctioning nine individuals and 26 entities tied to its scam operations, leadership, investors, and front companies. Read the full notice here.

FinCEN also proposed expanding its Huione Group rule to cover H-Pay Service PLC, citing Huione’s role in laundering proceeds from cyber heists and virtual currency scams used by Prince Group. Treasury framed the move as part of a broader effort to dismantle Southeast Asia-based scam networks targeting Americans.

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The UK Financial Reporting Council sanctioned audit firm King & King and auditor Milankumar Patel over deficient audits of four GFG Alliance-linked companies. The FRC said the firm’s heavy fee dependence on GFG entities created self-interest threats that compromised auditor independence and objectivity, leading to ethics and audit-quality failures. Sanctions include financial penalties, severe reprimands, restrictions on King & King taking certain audit work, and a three-year ban on Patel performing statutory audit work.

Read the full notice here.

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The Hong Kong Monetary Authority warned the public about fraudulent websites and fake internet banking login screens impersonating Shanghai Commercial Bank, Chong Hing Bank, and OCBC Bank Hong Kong. HKMA reminded customers that banks will not send transaction links by SMS or email or request passwords or one-time passwords through phone, email, or embedded hyperlinks, and urged victims to contact their bank and report to Hong Kong Police.

Read the full notice here.

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The Federal Reserve barred Thomas Engelbrecht, former CEO and director of Bank of Eufaula and former director of S N B Bancshares, from future participation in the banking industry and imposed a $125,000 fine. The Fed said Engelbrecht used his position to cause the bank to make imprudent credit extensions to a relative’s company and participated in fabricating board meeting minutes.

Read the full notice here.

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