California Pacific Bank v. FDIC, No. 16-70725 (9th Cir. 2018)Annotate this Case
California Pacific Bank petitioned for review, challenging the constitutionality of the Banking Secrecy Act (BSA), 31 U.S.C. 5311-5330, and its implementing regulations, and alleged that the FDIC Board of Directors' decision, which found that the Bank violated the BSA and ordered it to implement a plan to bring the Bank into compliance, was not supported by substantial evidence. The Ninth Circuit denied the petition for review, holding that the Bank did not waive its constitutional challenges; the BSA and its implementing regulations were not unconstitutionally vague; neither the FDIC's investigation nor the ALJ was unconstitutionally biased against the Bank; the FDIC acted in accordance with the law by relying on the Federal Financial Institutions Examination Council Manual to clarify its four pillars regulation; and the FDIC Board's decisions were supported by substantial evidence.