2nd Bank in Boston Admits Currency Error

Associated Press

Shawmut Bank of Boston, the city's third largest, said Friday that it failed to report $191.2 million in currency transactions with foreign banks over five years and has gone to federal officials with the admission.

The bank said it began an internal study Feb. 7, the day lawyers for First National Bank of Boston pleaded guilty to charges that it failed to report similar transactions totaling $1.2 billion.

Bank of Boston was fined the maximum $500,000 in U.S. District Court in Boston for its violations of the Bank Secrecy Act.

Shawmut issued a statement saying that the study disclosed that one bank in Spain, two in Portugal, three in Canada and one in Ireland were involved in the unreported transactions, plus a single exchange involving a Swiss bank.

None of the banks was identified.

The study said the seven banks were erroneously on an exempt list along with 20 domestic customers--nine educational, religious and health organizations and airlines and 11 commercial firms in eastern Massachusetts.

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