Preventing Money Laundering and Terrorist Financing
not provoking a costly run on the bank. A compromise is often found by removing or discharging officers of the institution and imposing a large fine, while at the same time rehabilitating the institution with new owners and management under the watchful eye of the supervisor.34 Such was the case in the U.S. with Broadway National Bank.
5.2.5 Appeal The system of sanctions must be consistent with legal guarantees of an accused person’s right to a defense. The bank must be able to make its observations known to the supervisor and it must also have the right to lodge an appeal before a competent jurisdiction. The appeal system itself depends on a given country’s constitutional arrangements. In the US, for example, there are three levels of jurisdiction that deal with appeals. These are the Federal District Court in the area where the bank is located, the Federal Circuit Court, and, in the last resort, the US Supreme Court. In France, the Council of State is the only authority empowered to examine appeals against the Commission bancaire’s rulings. In Sweden, appeals can be made to the County Administrative Board, the Administrative Court of Appeal, and finally the Supreme Administrative Court, depending on the sanction chosen by the inspection authority (Finansinspektionen).35
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