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<SEC-DOCUMENT>0001104659-07-059276.txt : 20070807
<SEC-HEADER>0001104659-07-059276.hdr.sgml : 20070807
<ACCEPTANCE-DATETIME>20070806181116
ACCESSION NUMBER:		0001104659-07-059276
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20070806
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20070807
DATE AS OF CHANGE:		20070806

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN EXPRESS CO
		CENTRAL INDEX KEY:			0000004962
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				134922250
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07657
		FILM NUMBER:		071029070

	BUSINESS ADDRESS:	
		STREET 1:		200 VESEY STREET
		STREET 2:		50TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
		BUSINESS PHONE:		2126402000

	MAIL ADDRESS:	
		STREET 1:		200 VESEY STREET
		STREET 2:		50TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a07-21089_28k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>







</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div> <p style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p><p style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington, D.C. 20549</font></b></p><p style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM 8-K</font></b></p><p style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p><p style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section 13 or 15(d) of the</font></b></p><p style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Securities Exchange Act of 1934</font></b></p><p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-siz
e:10.0pt;">Date of Report (Date of earliest event reported): <b>&#160;August 6, 2007</b></font></p><p style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">AMERICAN EXPRESS COMPANY</font></b></p><p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>New York</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1-7657</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">13-4922250</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
  jurisdiction</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File
  Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of incorporation</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or organization)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:65.88%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">200 Vesey
  Street, World Financial Center</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:65.88%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">New
  York, New York</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10285</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:65.88%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
  principal executive offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone
number, including area code: <b>(212) 640-2000</b></font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former
address, if changed since last report)</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p><p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p><p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="
1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p><p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p><p style="font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text
- -indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>


<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 7.01</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Regulation
FD Disclosure</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As described in the
Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2006, in
recent years, U.S. and foreign regulatory authorities, together with
international organizations, have raised increasing concerns over the ability
of criminal organizations and corrupt persons to use global financial
intermediaries to facilitate money laundering.&#160;
Compliance efforts to combat money laundering remain a high priority for
the Company and its subsidiaries, including American Express Bank Ltd. (&#147;AEBL&#148;)
and American Express Travel Related Services Company, Inc. (&#147;TRS&#148;), and they
have increased their efforts to address evolving regulatory and supervisory
standards and requirements in jurisdictions in which they do business.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As previously disclosed,
in early 2004, American Express Bank International (&#147;AEBI&#148;), a subsidiary of
AEBL headquartered in Miami, received subpoenas from the Department of Justice
(&#147;DOJ&#148;) relating to certain customer accounts and anti-money laundering (&#147;AML&#148;)
compliance programs.&#160; In
September&nbsp;2006, the DOJ informed AEBI of concerns relating to its AML
compliance program.&#160; In addition, in
2007, the Board of Governors of the Federal Reserve System (the &#147;Federal
Reserve&#148;) and the Financial Crimes Enforcement Network (&#147;FinCEN&#148;) of the
Department of Treasury informed AEBI of potential enforcement actions relating
to its AML programs.&#160; Also, in June 2007,
FinCEN informed TRS that it separately had concerns relating to TRS&#146;s
compliance with the provisions of the Bank Secrecy Act regarding the filing of
Suspicious Activity Reports in connection with its travelers check business.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On August 6, 2007, AEBI entered
into a settlement with the DOJ, the Federal Reserve and FinCEN relating to
deficiencies in its AML program.&#160; As part
of the settlement, AEBI entered into a Deferred Prosecution Agreement with the
DOJ, a Cease and Desist Order with the Federal Reserve and a Consent Order with
FinCEN, each of which provides for a money penalty.&#160; The Consent Order with FinCEN also resolves
FinCEN&#146;s determination that TRS did not file timely, accurate and complete
Suspicious Activity Reports.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will pay a
total of $65 million in settlement of all these matters.&#160; Of the amount to be paid, $60 million is
attributable to the matters involving AEBI and $5 million is attributable to
the matter involving TRS.&#160; The DOJ
assessed a $55 million payment under the Deferred Prosecution Agreement.&#160; FinCEN assessed a civil money penalty in the
amount of $25 million under its Consent Order, $15 million of which is
concurrent with the DOJ payment and is therefore deemed satisfied by the
payment to be made to the DOJ, with the remaining $10 million assessed under
the FinCEN Consent Order to be paid to the Department of the Treasury.&#160; The Federal Reserve assessed a civil money
penalty in the amount of $20 million under its Cease and Desist Order, which is
concurrent with the penalty assessed by the DOJ and FinCEN and is likewise
therefore deemed satisfied by the payments to the DOJ and the Department of the
Treasury.</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the first quarter
of 2007, the Company established a reserve in the amount of $60 million for
regulatory and legal matters at AEBI.&#160;
The Company increased the reserve during the second quarter of 2007 for
the resolution of the matters.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the Deferred
Prosecution Agreement, the DOJ will file an information in the U.S. District
Court for the Southern District of Florida charging AEBI with violating the
Bank Secrecy Act by failing to maintain an effective anti-money laundering
program.&#160; This charge will be deferred,
and absent a breach of the agreement, will be dismissed after 12 months or such
earlier time as described in the Deferred Prosecution Agreement, and no further
prosecution relating to these matters will be brought.&#160; The Federal Reserve&#146;s Cease and Desist Order
also requires that AEBI implement certain remedial measures, which are
presently underway<b>.</b></font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Also on August 6, 2007, AEBL
entered into a Written Agreement<b>  </b>with the New
York State Banking Department, the primary regulator of AEBL, under which AEBL
has agreed to implement certain enhancements and remedial measures to its AML
compliance program.&#160; There is no monetary
fine or penalty associated with this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to resolving
each of the above proceedings, the Company has committed to its&#160; consolidated supervisor, the Office of Thrift
Supervision (&#147;OTS&#148;), that it will complete its efforts to develop and implement
an enterprise wide AML compliance program that will govern compliance
throughout the American Express organization, and will ensure that each of its
subsidiaries is provided with resources adequate to meet its legal and
regulatory obligations.&#160; The Company will
report periodically on its progress to the OTS.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A copy of each of the
Deferred Prosecution Agreement with the DOJ, the Cease and Desist Order with
the Federal Reserve, the Assessment of Civil Money Penalty by FinCEN and the
Written Agreement with the NYSBD is attached to this report as Exhibits 99.1,
99.2, 99.3 and 99.4, respectively, and each is hereby incorporated by
reference.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Exhibit</p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred Prosecution Agreement, dated August 6,
  2007, between American Express Bank International and the United States
  Department of Justice, Criminal Division (including Factual Statement in
  connection therewith).</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cease and Desist Order and Order of Assessment of a
  Civil Money Penalty, effective August 6, 2007, of the Board of Governors of
  the Federal Reserve System.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.3</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assessment of Civil Money Penalty by the Financial
  Crimes Enforcement Network of the United States Department of the Treasury.</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.42%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->99.4</p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Written Agreement, dated August 6, 2007, between
  American Express Bank Ltd. and the New York State Banking Department.</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt 72.0pt;text-align:center;text-indent:-72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURE</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.42%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->AMERICAN EXPRESS COMPANY</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(REGISTRANT)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:27.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:27.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Stephen P. Norman</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Stephen P. Norman</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Secretary</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August 6, 2007</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlNoTableShading -->Exhibit No.</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="87%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred Prosecution Agreement, dated August 6,
  2007, between American Express Bank International and the United States
  Department of Justice, Criminal Division (including Factual Statement in
  connection therewith).</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cease and Desist Order and Order of Assessment of a
  Civil Money Penalty, effective August 6, 2007, of the Board of Governors of
  the Federal Reserve System.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.3</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assessment of Civil Money Penalty by the Financial
  Crimes Enforcement Network of the United States Department of the Treasury.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.4</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Written Agreement, dated August 6, 2007, between
  American Express Bank Ltd. and the New York State Banking Department.</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a07-21089_2ex99d1.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<body lang="EN-US">

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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.1</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNITED STATES DISTRICT
COURT<br>
FOR THE SOUTHERN DISTRICT OF FLORIDA</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNITED STATES OF AMERICA,</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Plaintiff,</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No.</font></p>
  </td>
 </tr>
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  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">v.</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AMERICAN EXPRESS BANK</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL,</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DEFERRED PROSECUTION</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AGREEMENT</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Defendant,</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:48.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Defendant American Express Bank International (&#147;AEBI&#148;),
an Edge Act Corporation, by and through its attorneys, Debevoise &amp; Plimpton
LLP, pursuant to authority granted by its Board of Directors, and the United
States Department of Justice, Criminal Division (hereinafter, &#147;the United
States&#148;), enter into this Deferred Prosecution Agreement (the &#147;Agreement&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI shall waive indictment and agree to the filing of a
ONE (1) count information in the United States District Court for the Southern
District of Florida, Miami, charging it with failing to maintain an effective
anti-money laundering program, in violation of Title 31, United States Code,
Sections 5318(h)(1) and 5322(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
accepts and acknowledges responsibility for the conduct of its employees as set
forth in the Factual Statement attached hereto and incorporated by reference
herein as Appendix A (hereinafter, &#147;Factual Statement&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
expressly agrees that it shall not, through its attorneys, board of directors,
agents, officers or employees, make any public statement contradicting any
statement of fact</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">contained in the Factual Statement.&#160; Any such contradictory public statement by
AEBI, its attorneys, board of directors, agents, officers or employees, shall
constitute a breach of this Agreement as governed by Paragraph 12 of this
Agreement, and AEBI would thereafter be subject to prosecution pursuant to the
terms of this Agreement.&#160; The decision of
whether any statement by any such person contradicting a fact contained in the
Factual Statement will be imputed to AEBI for the purpose of determining
whether AEBI has breached this Agreement shall be in the sole and reasonable
discretion of the United States.&#160; Upon
the United States&#146; notification to AEBI of a public statement by any such
person that in whole or in part contradicts a statement of fact contained in
the Factual Statement, AEBI may avoid breach of this Agreement by publicly
repudiating such statement within 48 hours after notification by the United
States.&#160;&#160; This paragraph is not intended
to apply to any statement made by any individual in the course of any criminal,
regulatory, or civil case initiated by a governmental or private party against
such individual.&#160; In addition, consistent
with AEBI&#146;s obligation not to contradict any statement of fact set forth in
Appendix A, AEBI may take good faith positions in litigation involving any
private party.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
agrees that it, in accordance with applicable laws: (a) shall provide to the
United States, on request, any relevant document, electronic data, or other
object concerning matters relating to this investigation in AEBI&#146;s possession,
custody and/or control.&#160; Whenever such
data is in electronic format, AEBI shall provide access to such data and
assistance in operating computer and other equipment as necessary to retrieve
the data.&#160; This obligation shall not
include production of materials covered by the attorney-client privilege or the
work product doctrine; and (b) shall in all material aspects completely, fully
and timely comply with all legal</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">obligations, record keeping and reporting requirements
imposed upon it by the Bank Secrecy Act, 31 U.S.C. &#167;&#167; 5311 through 5330 and all
Bank Secrecy Act implementing regulations.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
United States has determined that it could institute a criminal or civil
forfeiture action against certain funds laundered through certain
accounts.&#160; AEBI further acknowledges that
in excess of $55,000,000.00 may have been involved in transactions in accounts
in violation of Title 18, United States Code, Sections 1956, 1957, and 1960
and, therefore at least some or all funds deposited in such accounts could be
forfeitable to the United States pursuant to Title 18, United States Code,
Sections 981 and 982.&#160; AEBI recognizes
that in lieu of the United States instituting a civil or criminal forfeiture
action against at least certain of those funds, it hereby expressly agrees to
settle and does settle any and all civil and criminal forfeiture claims
presently held by the United States against those funds for the sum of
$55,000,000.00.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In
consideration of AEBI&#146;s remedial actions to date and its willingness to: (i)
acknowledge responsibility for the conduct of its employees as detailed in the
Factual Statement; (ii) continue its cooperation with the United States; (iii)
demonstrate its future good conduct and full compliance with the Bank Secrecy
Act and all of its implementing regulations, including, but not limited to, the
remedial actions itemized in Paragraph 9 below; and (iv) settle any and all
civil and criminal claims currently held by the United States, its agencies,
and representatives against the funds referred to in Paragraph 5 above for the
sum of $55,000,000.00, the United States shall recommend to the Court, pursuant
to 18 U.S.C. &#167; 3161(h)(2), that prosecution of AEBI on the Information filed
pursuant to Paragraph 1 be deferred for a period of twelve (12) months.&#160; AEBI shall consent to a motion, the contents
to be agreed by the parties, to be filed by the United States with the Court
promptly upon execution of this Agreement, pursuant to 18 U.S.C. &#167; 3161(h)(2),
in which the United States will present this Agreement to the Court and</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">move for a continuance of all further criminal
proceedings, including trial, for a period of twelve (12) months, for speedy
trial exclusion of all time covered by such a continuance, and for approval by
the Court of this deferred prosecution.&#160;
AEBI further agrees to waive and does hereby expressly waive any and all
rights to a speedy trial pursuant to the Sixth Amendment of the United States
Constitution, Title 18, United States Code, Section 3161, Federal Rule of
Criminal Procedure 48(b), and any applicable Local Rules of the United States
District Court for the Southern District of Florida for the period that this Agreement
is in effect.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
hereby further expressly agrees that any violations of the federal money
laundering laws and/or the Bank Secrecy Act pursuant to 18 U.S.C. &#167;&#167; 1956,
1957, 1960 and 31 U.S.C. &#167;&#167; 5313, 5318 and 5322, that were not time-barred by
the applicable statute of limitations as of the date of this Agreement, either
by statute or any previously executed Tolling Agreement, the terms of which are
hereby incorporated into this Agreement, may, in the sole reasonable discretion
of the United States, be charged against AEBI within six (6) months of any
breach of this Agreement, or any event which renders this Agreement null and
void, notwithstanding the expiration of any applicable statute of limitations.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
United States agrees that if AEBI is in full compliance with all of its
obligations under this Agreement, the United States, within thirty (30) days of
the expiration of the time period set forth in Paragraph 6 above, shall seek
dismissal with prejudice of the information filed against AEBI pursuant to
Paragraph 1 and this Agreement shall expire and be of no further force or
effect.&#160;&#160; Notwithstanding the preceding
sentence, the parties agree that if AEBI&#146;s business operations are sold to a
party or parties unaffiliated with AEBI as of the date hereof, whether by sale
of stock, merger, consolidation, sale of a significant portion of its assets,
or other form of business combination, or otherwise undergoes a direct or
indirect change of control within the</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">term of this Agreement, the Information shall be
dismissed with prejudice and all other obligations of AEBI under this
Agreement, other than the obligations set forth in paragraph 4(a), shall
terminate upon the closing of any such transaction or the occurrence of such
change of control.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
has agreed to implement certain remedial measures designed to fully comply with
the Bank Secrecy Act, including but not limited to, the terms and conditions of
the Board of Governors of the Federal Reserve System&#146;s <u>Cease and Desist
Order and Order of Assessment of Civil Money Penalty Issued Upon Consent
Pursuant to the Federal Deposit Insurance Act, as Amended</u>, Docket Number
07-017-B-EC, and the Department of the Treasury, Financial Crimes Enforcement
Network&#146;s <u>Consent to the Assessment of Civil Money Penalty</u>, No. 2007-1,
the terms of which are hereby fully incorporated into this Statement of Facts
and related Deferred Prosecution Agreement, as they relate to AEBI.&#160; </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
and the United States understand that the Agreement to defer prosecution of
AEBI must be approved by the Court, in accordance with 18 U.S.C. &#167;
3161(h)(2).&#160;&#160; Should the Court decline to
approve a deferred prosecution for any reason, both the United States and AEBI
are released from any obligation imposed upon them by this Agreement and this
Agreement shall be null and void.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Should
the United States determine during the term of this Agreement that AEBI has
committed any federal crime commenced subsequent to the date of this Agreement,
AEBI shall, in the sole reasonable discretion of the United States, thereafter
be subject to prosecution for any federal crimes of which the United States has
knowledge.&#160; Except in the event of a
breach of this Agreement, the parties agree that all criminal investigations
arising from: (a) the facts contained in, connected to, or involving the
accounts described in the Factual Statement; (b) other accounts</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that were the subject of grand jury subpoenas in the
course of this investigation, as well as AEBI&#146;s efforts to comply with grand
jury subpoenas issued in the course of the investigation; and (c) AEBI&#146;s
AML/BSA compliance program, including AEBI&#146;s compliance with the BSA&#146;s
suspicious activity reporting requirements, that have been, or could have been,
conducted by the United States prior to the date of this Agreement, shall not
be pursued further as to AEBI or any of its parents, affiliates, successors, or
related companies, and that the United States will not bring any additional
charges against AEBI or any of its parents, affiliates, successors, or related
companies, relating to these matters.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Should
the United States determine that AEBI has committed a willful and material
breach of any provision of this Agreement, the United States shall provide
written notice to AEBI of the alleged breach and provide AEBI with a two-week
period, or longer at the reasonable discretion of the Assistant Attorney
General in charge of the Criminal Division, in which to make a presentation to
the Assistant Attorney General to demonstrate that no breach has occurred or, to
the extent applicable, that the breach is not willful or material or has been
cured.&#160; The parties hereto expressly
understand and agree that should AEBI fail to make a presentation to the
Assistant Attorney General within such time period, it shall be presumed that
AEBI is in willful and material breach of this Agreement.&#160; The parties further understand and agree that
the Assistant Attorney General&#146;s exercise of reasonable discretion under this
paragraph is not subject to review in any court or tribunal outside of the
Department of Justice. In the event of a breach of this Agreement which results
in a prosecution, such prosecution may be premised upon any information
provided by or on behalf of AEBI to the United States at any time, unless
otherwise agreed when the information was provided.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
agrees that, if AEBI&#146;s business operations are sold to a party or parties
unaffiliated with AEBI as of the date hereof, whether by sale of stock, merger,
consolidation, sale of a significant portion of its assets, or other form of
business combination, or otherwise undergoes a direct or indirect change of
control within the term of this Agreement, AEBI shall include in any contract
for sale or merger a provision binding the purchaser/successor to the
obligations described in Paragraph 4(a) of this Agreement regarding cooperation
with the Department of Justice.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; It
is further understood that this Agreement is binding on AEBI and the United
States Department of Justice, but specifically does not bind any other federal
agencies, or any state or local authorities, although the United States will
bring the cooperation of AEBI and its compliance with its other obligations
under this Agreement<b>  </b>to the
attention of state or local prosecuting offices or regulatory agencies, if
requested by AEBI or its attorneys.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; It
is further understood that this Agreement does not relate to or cover any
criminal conduct by AEBI other than the conduct or accounts described in
paragraph 11.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
and the United States agree that, upon acceptance by the Court, this Agreement
and an Order deferring prosecution shall be publicly filed in the United States
District Court for the Southern District of Florida.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This
Agreement sets forth all the terms of the Deferred Prosecution Agreement between
AEBI and the United States.&#160; No promises,
agreements, or conditions shall be entered into and/or are binding upon AEBI or
the United States unless expressly set forth in writing, signed by the United
States, AEBI&#146;s attorneys, and a duly authorized representative of AEBI. This
Agreement supersedes any prior promises, agreements or conditions between AEBI
and the United States.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Acknowledgments</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Simon E. Amich, the duly authorized representatives
of American Express Bank International, hereby expressly acknowledge the
following: (1) that I have read this entire Agreement; (2) that I have had an
opportunity to discuss this Agreement fully and freely with American Express
Bank International&#146;s attorneys; (3) that American Express Bank International
fully and completely understands each and every one of its terms; (4) that
American Express Bank International is fully satisfied with the advise and
representation provided to it by its attorneys; and (5) that American Express
Bank International has signed this Agreement voluntarily.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank International</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="15%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August 6, 2007</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:32.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:42.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Simon E. Amich</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DATE</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIMON E. AMICH</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President &amp; Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank International</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="112" style="border:none;"></td>
  <td width="239" style="border:none;"></td>
  <td width="320" style="border:none;"></td>
  <td width="77" style="border:none;"></td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 24.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Counsel
for the American Express Bank International</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned are outside counsel for AEBI.&#160; In connection with such representation, we
acknowledge that: (1) we have discussed this Agreement with our client; (2)
that we have fully explained each one of its terms to our client; (3) that we
have fully answered each and every question put to us by our client regarding
the Agreement; and (4) we believe our client completely understands all of the
Agreement&#146;s terms.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="15%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August 6, 2007</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:32.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:42.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DATE</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MARY JO WHITE</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BRUCE E. YANNETT</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ANDREW J. CERESNEY</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Debevoise &amp; Plimpton LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attorneys for American Express Bank International</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="112" style="border:none;"></td>
  <td width="239" style="border:none;"></td>
  <td width="320" style="border:none;"></td>
  <td width="77" style="border:none;"></td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">8</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p align="center" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b><u style="font-weight:bold;">On Behalf
of the Government</u></b></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="42%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALICE FISHER</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assistant Attorney General, Criminal Division</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">United States Department of Justice</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="42%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:52.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;6,
  2007</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Richard Weber</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DATE</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RICHARD WEBER, Chief</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Asset Forfeiture and Money Laundering Section</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">U.S. Department of Justice, Criminal Division</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;6,
  2007</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John W. Sellers</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DATE</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JOHN W. SELLERS</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Trial Attorney</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Asset Forfeiture and Money Laundering Section</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">U.S. Department of Justice, Criminal Division</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August&nbsp;6,
  2007</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Thomas J. Pinder</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DATE</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THOMAS J. PINDER</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Trial Attorney</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Asset Forfeiture and Money Laundering Section</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:39.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">U.S. Department of Justice, Criminal Division</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">9</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">
<div>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Factual
Statement</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; American Express Bank International (AEBI) is an Edge
Act Corporation, whose primary business activity is the provision of private
banking services to wealthy Latin American clients.&#160; AEBI has total assets of approximately $1
billion. &#160;The Federal Reserve Bank of
Atlanta regulates AEBI.&#160; AEBI was
originally headquartered in New York, New York, and in June 1985, opened a
branch office in Miami, Florida.&#160; In or
about July 1997, AEBI&#146;s headquarters were relocated from New York to Miami.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Bank Secrecy Act (&#147;BSA&#148;), 31 U.S.C. &#167; 5311 et seq.,
and its implementing regulations, which Congress enacted to address an increase
in criminal money laundering activities utilizing financial institutions,
require domestic banks, insured banks and other financial institutions to
maintain programs designed to detect and report suspicious activity that might
be indicative of money laundering, terrorist financing and other financial
crimes, and to maintain certain records and file reports related thereto that
are especially useful in criminal, tax or regulatory investigations or
proceedings.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The U.S. Department of Justice, Criminal Division, Asset
Forfeiture and Money Laundering Section, and the U.S. Drug Enforcement
Administration, have determined that from December 1999 through April 2004,
American Express Bank International wilfully violated the anti-money laundering
requirements of the Bank Secrecy Act (BSA) and its implementing
regulations.&#160; The violations at AEBI were
serious and systemic and allowed millions of dollars of financial transactions
involving proceeds from the sale of illegal narcotics to be conducted by others
through AEBI accounts.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Investigators have identified specific accounts AEBI
accounts (hereinafter referred to as &#147;the Targeted Accounts&#148;) which they
believe were used to launder more than $55 million of drug proceeds by and
through the &#147;Black Market Peso Exchange,&#148; the mechanics of</font></p>


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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.4%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><u>United States v.
  American Express Bank International</u></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred Prosecution Agreement Factual Statement</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">which are explained further below.&#160; In addition to the Targeted Accounts,
investigators identified numerous other AEBI private banking accounts that were
controlled by apparently legitimate South American businesses, but held in the
names of offshore shell corporations and used to process &#147;parallel currency
exchange market&#148; transactions originating from South America. South American
parallel currency exchange markets are saturated with drug proceeds and
represent a high risk of money laundering to financial institutions around the
world, particularly U.S. based financial institutions.&#160; Despite knowing of this risk, AEBI personnel
allowed certain customers to use accounts at AEBI to process such transactions
even though the bank had little ability to monitor or control the transactions
in these accounts.</font></p>

<p align="center" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">The
&#147;Black Market Peso Exchange</font>&#148; </font></u><u>and<br>
Drug Money Laundering through Parallel Currency Exchange Markets</u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Black Market Peso Exchange (&#147;BMPE&#148;) is a trade-based
money laundering system through which South American &#147;money brokers&#148; facilitate
a non-regulated currency exchange of United States dollars for local South
American currency.&#160; The money broker
stands between South American drug cartels on one side, and South American
importers on the other. The drug cartels, particularly in Colombia, hold large
quantities of United States dollars &#150;derived from retail drug trafficking in
the United States &#150; that they need to convert into local currency (i.e.,
Colombian pesos) for their illicit use in South America.&#160; On the other side, South American businesses
often require United States dollars to pay for imported goods or services, but
to avoid government scrutiny, import duties, sales and income taxes, red tape,
and the often less-favorable exchange rates associated with the official
currency exchange mechanisms, they seek to purchase these dollars from an &#147;unregulated
exchange.&#148;</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Under Colombian foreign exchange laws, a Colombian who
needs to purchase United States currency to pay for imports is legally required
to do this through the &#147;regulated&#148; or &#147;formal&#148; currency exchange market.&#160; Accordingly, non-financed, United States
dollar payments for goods imported into Colombia must occur by one of three
methods:&#160; (1) transactions through
Colombian financial institutions regulated by the Banco de la Rep&#250;blica; (2)
transactions through formal currency exchange houses licensed by the
Superintendencia Bancaria to engage in international currency transfers; or (3)
transactions from a dollar denominated account at a foreign bank, called a &#147;Cuenta
Corriente de Compensaci&#243;n&#148; (current compensation account) that is registered in
the importer&#146;s name with the Banco de la Rep&#250;blica.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All dollar payments for imported goods on the formal
exchange market are supposed to be reported to the Banco de Rep&#250;blica and the
Direccion de Impuestos y Aduanas Nacionales (&#147;DIAN&#148;), which is the Colombian
customs and taxing authority.&#160; The
legitimacy of all payments for all import goods is corroborated through formal
declarations that must be filed with the banks and are forwarded to the
DIAN.&#160; In theory, these declarations
should match, dollar for dollar, the declared value of the imported goods, as
stated on the Colombian customs entry documents for those goods, which are also
retained by the DIAN.&#160; Although
Colombians can legally purchase United States currency on the so called &#147;non-regulated,&#148;
&#147;free,&#148; or &#147;parallel&#148; currency exchange market for such things as personal use,
travel, and minor personal investments, they <u>cannot</u> use the parallel
exchange market to purchase United States dollar payments for imported goods.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; That Colombian businesses are required to use the formal
currency exchange market for import and export activities is common knowledge
in Colombia. &#160;Nonetheless, these</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">legal requirements are often circumvented by
businesses which, for the most part, introduce goods into Colombia by
under-reporting the true value of imported goods or by importing the goods into
Colombia without reporting them.&#160; These
Colombian businesses usually have to pay for their goods with United States
dollars, but they obtain such dollars on the parallel exchange market, thereby
avoiding the reporting requirements of the formal exchange market and
disguising the evasion of customs duties, sales taxes, and income taxes.&#160; The portion of the parallel exchange market
that caters to this is referred to as the &#147;black&#148; currency exchange market for
two reasons.&#160; First, they are designed to
promote and disguise these widespread smuggling operations and the related tax
evasion.&#160; Second, a significant source of
&#147;unregulated&#148; dollars in Colombia and other South American countries is drug
trafficking.&#160; That dollar payments for
smuggled goods in South American countries originates primarily from drug
trafficking activity is common knowledge in Colombia, and other Latin America
and Carribean countries.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Having set forth the reasons why imported goods and
foreign services are often paid for with drug proceeds, the next step is to
explain how those drug proceeds end up in the United States banking system,
ultimately transferred to bank accounts of United States exporters and other
entities that sell goods and services in South America (typical BMPE accounts)
or, in a somewhat different BMPE scheme, routed to personal savings and
investment accounts held in the United States by South Americans (flight
capital accounts, generally held in the names of offshore shell
corporations).&#160; </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the typical BMPE currency exchange
transaction, a BMPE money broker meets with Colombian drug traffickers who hold
large amounts of retail drug proceeds in the</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">form of United States dollars in the United States and
other places.&#160; These drug proceeds may be
waiting in stash-houses or have already been laundered into the United States
financial system by the drug trafficking organizations.&#160; The BMPE broker agrees to purchase drug
dollars from the drug traffickers with Colombian pesos at a heavily discounted
exchange rate.&#160; The BMPE broker then
finds Colombian or other South American customers &#150; usually businesses that
seek United States dollars to pay for imports or other foreign services &#150; and
sells the Colombian or South American customers the right to use the drug
dollars.&#160; The BMPE broker may also sell
those dollars to South Americans seeking to maintain U.S. dollar investments in
the United States and elsewhere outside their home countries.&#160;&#160; In either case, the broker negotiates a
dollar/peso exchange rate with his Colombian and South American customers at
rates lower than the formal currency exchange market rates, but higher than the
broker paid for the dollars.&#160; The
Colombian and South American customers inform the broker where the United
States dollars purchased need to be delivered.&#160;
This information is passed on to a money laundering organization in the
United States or elsewhere that executes the delivery.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the typical BMPE transaction, the
purchased drug proceeds will be wire transferred to the specific bank account
of a United States or foreign company that sold goods or services to the broker&#146;s
Colombian or South American customer.&#160;
Once the United States dollars are delivered to their United States or
foreign destination, the broker gives his Colombian or other South American
customers proof the dollars were sent (<u>e.g.,</u> copies of the United States
dollar wire transfer requests or confirmations).&#160; The Colombian or other South American
customers pay the broker the equivalent in Colombian pesos at the previously
negotiated exchange rate.&#160; In turn, the
broker transfers any pesos he receives from his customers to the drug</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">trafficking organization that sold him the United
States dollars, and the broker retains the profit he made on the exchange
transactions. </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Thus, without using any formal
currency exchange mechanism, drug cartels exchange the drug dollars they own in
the United States and elsewhere for Colombian pesos or other South American
currency that they can spend in South America (thereby avoiding the risks
associated with smuggling the drug dollars out of the U.S. and converting the
dollars to pesos). On the other side of the transaction, again without using
any formal currency exchange mechanism, Colombian or other South American
businesses and individuals exchange pesos for United States dollar payments
that originate in the United States to pay for the purchase of goods imported
into Colombia or other South American countries, services from foreign
companies, or to fund personal investment accounts in the United States or
elsewhere, without having to pay taxes or be subject to government scrutiny.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">BMPE
Transactions at AEBI</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI knowingly allowed South American
customers to use accounts at the bank to process parallel currency exchange
market transactions, many of which turned out to be BMPE transactions.&#160; Both types of accounts (traditional BMPE
accounts and flight capital accounts held in offshore corporate names) were
characterized by the same type of suspicious incoming funds transfers:&#160; dozens, sometimes hundreds, of sources of
incoming funds (typically wire transfers) from persons and entities completely
unrelated to the account holder.&#160; In many
cases, the financial transactions were inconsistent with the nature of the
account holder&#146;s business as understood by bank personnel.&#160;&#160; A large amount of funds were received into
the accounts under circumstances suggesting they were drug proceeds.&#160; In addition, hundreds of</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">thousands of dollars of drug proceeds were transferred
to the Targeted Accounts directly from law enforcement agents, who in an
undercover capacity, were &#147;working for&#148; Colombian money brokers and drug
traffickers.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Anti Money Laundering and Bank Secrecy Act Requirements</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Pursuant to Title 31, United States
Code, Section 5318(h)(1) and 12 C.F.R. &#167; 211.5(m)(1), AEBI is required to
establish and maintain an anti-money laundering (AML) compliance program that,
at a minimum:&#160; (a) provides internal
policies, procedures, and controls designed to guard against money laundering;
(b) provides for an individual or individuals to coordinate and monitor
day-to-day compliance with the BSA and AML requirements; (c) provides for an
ongoing employee training program; and (d) provides for independent testing for
compliance conducted by bank personnel or an outside party.&#160; Fundamental laws establishing anti-money
laundering obligations of banking organizations in the United States include
the Bank Secrecy Act (&#147;BSA&#148;), 31 U.S.C. &#167; 5311 et seq.; the Money Laundering
Control Act of 1986 (codified in relevant part at 18 U.S.C. &#167;&#167; 1956 and 1957);
and the USA PATRIOT Act of 2001, which significantly amended both laws and
extended an anti-money laundering program requirement beyond federally insured
deposit institutions to all types of financial institutions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI&#146;s location in South Florida has
been designated a High Intensity Drug Trafficking Area, and AEBI provides
private banking services to high net worth individuals living in Latin America,
a region known as a source for illegal narcotics.&#160; Therefore, AEBI is operating under a
high-risk of money laundering.&#160; Although
AEBI is subject to the same laws and regulations under the Bank Secrecy Act as
other domestic banks, it is required to use enhanced diligence with respect to
the products and services it provides to its unique customer</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">base.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Bank Secrecy Act specifically
requires banks, including AEBI, to file with the Department of Treasury and, in
some cases, appropriate Federal law enforcement agencies, a Suspicious Activity
Report (&#147;SAR&#148;), in accordance with the form&#146;s instructions, when the type of
activity described in Paragraphs 4 through 13 above is detected.&#160; <u>See</u> 31 U.S.C. &#167; 5318(g), 31 C.F.R. &#167;
103.18, and 12 C.F.R. &#167; 211.5k.&#160; The
requirement became effective on April 1, 1996. According to the form&#146;s
instructions, AEBI was required to file a SAR with the Department of Treasury&#146;s
Financial Crimes Enforcement Network (&#147;FinCEN&#148;), reporting any transaction
conducted or attempted by, at, or through the bank, if it involved or
aggregated at least $5,000 in funds or other assets, and the bank knew,
suspected, or had reason to suspect that:</font></p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;&nbsp;&nbsp;The
transaction involved funds derived from illegal activities or was intended or
conducted in order to hide or disguise funds or assets derived from illegal
activities (including, without limitation, the ownership, nature, source,
location, or control of such funds or assets) as part of a plan to violate or
evade any federal law or regulation or to avoid any transaction reporting
requirement under federal law or regulation.</font></p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;&nbsp;&nbsp;The
transaction was designed to evade any requirements promulgated under the Bank
Secrecy Act.</font></p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;&nbsp;&nbsp;The
transaction had no business or apparent lawful purpose or was not the sort in
which the particular customer would normally be expected to engage, and the
bank knew of no reasonable explanation for the transaction after examining the
available facts, including the background and possible purpose of the
transaction.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The investigation into this matter
has determined that the primary cause of</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AEBI&#146;s failure to identify, prevent and report the
activity described in Paragraphs 4-13 is that, at least through April 12, 2004,
AEBI&#146;s Anti-Money Laundering (AML) program contained serious and systemic
deficiencies in critical areas required by the Bank Secrecy Act and its implementing
regulations.&#160; The following summarizes
the serious and systemic deficiencies uncovered through this investigation:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to exercise sufficient control over accounts held in the names of
offshore bearer share corporations, and until 2004 had no policy or procedure
requiring beneficial owners of such accounts to certify in writing their
continued ownership of the bearer shares.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to conduct a risk assessment of its operations until 2002, and
consequently was unable to and did not identify and monitor its highest-risk
banking products and transactions.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to develop and maintain an account monitoring program that was
adequately designed to identify, detect, report and prevent suspicious
activities.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to monitor adequately the source of funds sent to customer accounts to
identify suspicious activities.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to independently verify information on clients provided by private bank
relationship managers.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to provide compliance personnel with authority to identify and prevent
suspicious and high-risk banking activities.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI
failed to maintain an audit program reasonably designed to ensure the bank&#146;s
compliance with BSA / AML laws and regulations.</p>


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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">1994 Department of Justice Settlement Agreement</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In 1994, AEBI was involved in a
significant money laundering case and consequently operates under the
background of a Department of Justice Settlement Agreement. On November 18,
1994, AEBI entered into a Settlement Agreement with the Department of Justice
relating to the Bank&#146;s compliance with the Bank Secrecy Act and anti-money
laundering regulations and statutes.&#160; The
settlement grew out of a related indictment and conviction in June 1994 of two
of AEBI&#146;s employees as a result of a U.S. Customs Service investigation into
cartel leader Juan Garcia Abrego.(1)&#160;
This Settlement Agreement also followed a Cease and Desist Order and
Civil Penalty between AEBI and the Federal Reserve dated November 1, 1993.&#160; As part of the Settlement, the Department of
Justice withdrew and dismissed a civil money laundering complaint it filed
against AEBI and did not file criminal charges against the bank. AEBI also
agreed to a substantial monetary penalty, comprised of the withdrawal of AEBI&#146;s
claim to a $30 million client account that served as collateral for $19 million
in AEBI loans, the forfeiture of $7 million, a $7 million penalty, and the bank&#146;s
agreement to spend no less than $3 million on the development and
implementation of policies, procedures, and training in order to assure
compliance with the government&#146;s BSA/AML regulations and statutes. </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The enhanced compliance requirement
of the Settlement Agreement focused on the weaknesses in standard procedures
for screening new clients.&#160; The
Settlement Agreement broadly required AEBI to: </font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; implement
an enhanced AML and BSA compliance program;</p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1) <u>United States v. Aguirre-Villagomez, et al.</u>,
<u>United States v. Giraldi</u>, 86 F.3d 1368 (5</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th </font>Cir. 1996); <u>United States v.
Castaneda-Cantu</u>, 20 F.3d 1325 (5<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;Cir. 1994).</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">10</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>expend
$3 million on the development and implementation of policies, procedures,
training and audit;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>retain
independent consultants to conduct a thorough review of AEBI&#146;s compliance
program; </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>promote
a fully functioning and adequately staffed compliance program, with specific
emphasis on: </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>implementation
of policies, procedures, and programs designed to ensure conformity to the
requirements of the Bank Secrecy Act and the money laundering statutes;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>improvement
of the bank&#146;s &#147;know your client&#148; policies and procedures; </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>training
of all employees of AEBI on a regular basis on the Bank Secrecy Act and the
money laundering statutes, and the &#147;know your client&#148; policies of AEBI; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>evaluation
of the sufficiency of existing internal audit and control procedures for
identifying possible violations of the Bank Secrecy Act, the money laundering
statutes, and the &#147;know your client&#148; policies of AEBI.</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Significant Bank Secrecy Act Program Failures at AEBI</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Know Your Customer
Deficiencies</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Compliance with the SAR reporting
requirements of the Bank Secrecy Act necessitates an integrated Know Your
Customer Program (KYC Program).&#160; An
integrated KYC Program necessarily forms the heart of any adequate anti-money
laundering program.&#160; The Federal Reserve
has advised banks, including AEBI, that an effective KYC program should incorporate
the following principles into the association&#146;s business practices: </font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Determine
the true identity of all customers requesting services; </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Determine
the customer&#146;s source(s) of funds for transactions; </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Determine
the particular customer&#146;s normal and expected transactions;</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Monitor
customer transactions to determine if they are consistent with the normal and
expected transactions for that customer or for similar categories or classes of
customers; </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Identify
customer transactions that do not appear to be consistent with normal and
expected transactions for that particular customer or for customers in similar
categories or classes; and </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Determine
if a transaction is unusual or suspicious and, if so, report those
transactions.</p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bearer Share Corporate Accounts</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Almost all of the Targeted Accounts
of AEBI shared the characteristic of being held in the names of &#147;bearer share
corporations&#148; incorporated in offshore jurisdictions, such as the British
Virgin Islands (BVI).&#160; Bearer share
corporations are owned by the person or entity holding, or &#147;bearing,&#148; the
unregistered corporate common stock.&#160;
There are no formal procedures for transferring ownership of a bearer
share corporation&#146;s stock certificates to another, and linking any person to
such a corporation is difficult.&#160;
Accordingly, professional money launderers and other criminals
frequently use such corporations to open offshore and domestic bank accounts to
deposit illicit money. &#160;Bearer share
structures make it extremely difficult for banks (and law enforcement) to know
the actual owners of accounts and to satisfy the Know Your Customer
requirements.&#160; One example amongst the
Targeted Accounts at AEBI was an account controlled by a Colombian national,
but held in the name of an offshore (BVI) bearer share corporation, which was
in turn controlled by three other bearer share corporations, which in turn had
given the Colombian national a power of attorney, authorizing him to control the
financial affairs and bank accounts of the original bearer share corporation.&#160; This individual processed millions of dollars
in what appear to be BMPE transactions through AEBI accounts.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition to the Targeted Accounts,
the Bank had numerous other accounts held in the names of offshore shell
corporations, many controlled through bearer shares.&#160; Many of these accounts were beneficially
owned and controlled by supposedly legitimate corporations in South America.&#160; There are few, if any, legitimate reasons why
an established business concern would need or want to conduct financial
transactions through secret accounts held in the names of offshore shell
corporations.&#160; Yet, law enforcement has
found that the presence of such accounts is endemic to international private
banking in the United States, including at AEBI.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">AML Risk Assessment</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Because of AEBI&#146;s location in South
Florida, a designated High Intensity Drug Trafficking Area, and its provision
of private banking services to high net worth individuals living in Central and
South America, a region known as a source for illegal narcotics, AEBI is
considered to be operating under a high risk of money laundering.&#160; Yet no bank of substantial size can possibly monitor
every single transaction and every single account.&#160; Thus, most banks conduct a formal and
detailed risk assessment of each of its products, transactions, services,
geographic locations, etc., and then tailor their limited AML and BSA resources
to specifically monitor and control those areas identified as the highest risk.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Prior to May 2002, AEBI did not
conduct a risk assessment of its operations and products and consequently
failed to identify high-risk areas for enhanced monitoring.&#160; Based on the high risk of both Private
Banking and the country risk associated with a large majority of AEBI&#146;s
clientele, some type of risk assessment is expected as a regulatory and
supervisory matter.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Activity Monitoring</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Prior to 2004, AEBI relied upon a
proprietary software system, called the Client Activity Monitoring System or &#147;CAMS,&#148;
to monitor accounts for suspicious activity.&#160;
Yet CAMS was only capable of identifying accounts that had breached
preset parameters for external debits and total holdings, not for identifying
suspicious activity patterns.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The bank&#146;s written KYC policies and
procedures set out a clear expectation that bank employees assess their client&#146;s
transactions and ensure that those transactions remain consistent with the
client&#146;s usual business and activities and make economic sense based on their
knowledge of the client&#146;s source of wealth and use of funds.&#160; To that end, AEBI Relationship Managers (RM&#146;s)
were tasked with conducting a monthly review of the activity occurring in all
transaction accounts under their management using <i>Activity Analysis Reports </i>and<i> Activity Detail Reports </i>distributed by Compliance with the
goal of identifying any activity which appeared to be out of pattern for the
client or which required additional investigation.&#160; However, law enforcement identified a number
of examples of red flag activity or suspicious activity that was unmonitored
and unquestioned by AEBI, particularly with respect to the questionable source
of funds from South American parallel currency exchange market activity.&#160; The primary cause of this failure is that
AEBI&#146;s account monitoring system and the detail reports provided to the RM did
not identify the country of origin or the source of incoming funds.&#160; This failure contributed significantly to the
RM&#146;s failure to identify the massive amounts of parallel market transactions
occurring in AEBI accounts.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Even in situations where accounts
breached parameters and CAMS flagged the account for review by the RM, the bank
failed to effectively investigate the account activity.&#160; In</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">general, the RM&#146;s were not given reports with
sufficient transaction information to allow them to effectively review the
activity in the account.&#160; On a number of
occasions, instead of doing further investigation, RM&#146;s simply informed
Compliance that the activity in the account was consistent with the RM&#146;s
knowledge of the client&#146;s business.&#160; No
real review was conducted by the RM, and Compliance did not independently look
at the account activity to corroborate what the RM was reporting.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The &#147;Rules Based&#148; as opposed to a &#147;Risk
Based&#148; approach of monitoring activity, coupled with reliance on the RM to
provide the assessment of the quality of account flows, without independent
review and corroboration, was ineffective and caused AEBI to fail to identify,
prevent, and report suspicious activity.&#160;
Given that the account monitoring at AEBI was not a risk-based program,
it was even more critical for AEBI&#146;s compliance personnel to independently
review the account activity.&#160; Yet, the
limited &#147;independent reviews&#148; conducted by Compliance were confined to those
accounts that had exceeded external debit parameters; to the extent no
exceptions were noted all activity was deemed to be appropriate. </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deficiencies in Independent
Review of Account Activity</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As part of AEBI&#146;s policies and
procedures for account activity monitoring, Compliance personnel were supposed
to perform spot checks or independent reviews of accounts that breached
parameters.&#160; AEBI&#146;s compliance personnel
maintained a log of the accounts reviewed and the results.&#160; This log recorded the name of the responsible
RM, the account name, the parameter breached (holdings, activity- external
debits, or both), and the comments or explanations of the activity causing the
breach.&#160; A review of this log showed
significant deficiencies in AEBI&#146;s &#147;independent review&#148; process.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI&#146;s local compliance officer was
permitted to exempt accounts from activity monitoring based only on the
judgment of the compliance officer.&#160; Of
the total number of accounts reviewed, the Compliance officer had exempted
numerous accounts from the review process, many of which were commercial
accounts held in offshore corporate names.&#160;
There were some instances of accounts that had consistently breached parameters
for over 21 months and went without review by Compliance for that same
time.&#160; Compliance frequently justified
the exemption based on the fact that the account was commercial in nature.&#160; </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; It is apparent that AEBI failed to
adequately review accounts during these reviews.&#160; One of the Targeted Accounts, for example,
was reviewed through this process in July 2003.&#160;
The compliance officer conducting the review explained that the
parameter breach occurred because the customer had received payments from
corporate sales.&#160; Yet the reviewer failed
to note that during that month there were several unexplained incoming wire
transfers, one of which, unbeknownst to the reviewer, came from a DEA
undercover account and was drug money. </font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Some of the accounts being reviewed
by Compliance were being used to conduct heavy commercial activity as well as
high-risk foreign exchange transactions.&#160;
A sample of accounts reviewed for parameter breaches showed a
significant number of accounts with commercial activity.&#160; Also, the comments provided illustrated that
independent reviews were not actually being conducted by Compliance, but rather
were based on the uncorroborated information provided by the RM.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Source of Funds</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As discussed above, bank personnel
recognized the importance of knowing a</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">client&#146;s source of wealth.&#160; However, the CAMS system did not consider or
monitor source of wealth.&#160; Further, CAMS
only monitored for breaches in preset parameters:&#160; it did not identify or monitor the country of
origin or destination of funds flowing in and out of the accounts.&#160; Even the <i>Activity
Detail Reports</i> produced by CAMS offered little in the way of
detail.&#160; The information CAMS provided on
incoming wires did not include originator information, so the bank was unable
to monitor or review the source of funds sent into an account.&#160; Similarly, the information provided for check
deposits, even pouch deposits containing dozens of third-party checks, included
only the total deposit amount, and the date and type of deposit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reactionary Suspicious Activity Reports</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A review of the Suspicious Activity
Reports filed by AEBI shows a reactive nature in the Bank&#146;s reporting.&#160; From 1996 through 2004, only three SARs were
filed as a result of monitoring. Given the nature of the high risks associated
with Private Banking and specifically with the majority of the client base in
countries presenting a high-risk of money-laundering, the nominal amount of
filings that resulted from activity monitoring are very small and represent an
ineffective account monitoring program.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">BMPE
Exceptions</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI&#146;s particular risk to money
laundering through parallel currency exchange transactions and the BMPE is
heightened (1) because many of its clients are high net worth individuals
resident in high risk countries in Latin America, such as Colombia, often
deriving their wealth from commercial activities; (2) due to its character as a
banking organization primarily engaged in providing private banking services to
non-resident aliens; and (3) as a private bank.&#160;
As early as November 1999, Private Banking was identified as a high-risk
area in</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">17</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the fight against money laundering.(2)</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI
personnel were well aware of the BMPE and the prevalent use of the BMPE by
Colombian businessmen and the nature of transactions which may be associated
with the BMPE.&#160; Bank personnel also
demonstrated sophisticated knowledge and understanding of parallel currency
exchange markets.&#160; They also were aware
that it was common knowledge in South America, particularly Colombia, that the
parallel exchange markets were funded at least in part with drug money and that
there were two main reasons to use the parallel markets:&#160; 1) tax avoidance; and 2) a better exchange
rate.&#160; At the same time, these AEBI
personnel considered the parallel exchange market a &#147;fact of life&#148; in South
America - not something to be prevented or reported - but something that any
financial institution providing banking services to wealthy South Americans
would have to accommodate in the ordinary course of business.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The U.S. Department of the Treasury&#146;s
Financial Crimes Enforcement Network (FinCEN), has published extensive guidance
on the BMPE to financial institutions, including AEBI.&#160; In November 1997, FinCEN issued Advisory
Number 9, to <i>&#147;alert banks and other
depository institutions to a large-scale, complex money laundering system being
used extensively by Colombian drug cartels to launder the proceeds of narcotics
sales.</i>&#148;&#160; That Advisory was
followed by a second in June 1999, Issue Number 12, to provide &#147;<i>banks and other depository institutions with
additional information concerning the Black Market Peso Exchange system</i>.&#148;
In sum, these Advisories provided valuable information for banks to identify
BMPE activity and</font></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2) Testimony of Richard A. Small, Assistant Director,
Division of Banking Supervision and Regulation, <i>Vulnerability of Private Banking to Money Laundering Activities, </i>Before
the Permanent Subcommittee on Investigations, Committee on Governmental
Affairs, U.S. Senate, November 10, 1999</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">18</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided details of &#147;red flags&#148; that should alert
banks to BMPE activity.&#160; AEBI was well
aware of the BMPE, providing extensive coverage of the topic in its AML and BSA
training materials.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; United States and foreign
corporations that do a significant volume of business with Colombian and other
South American companies, and their domestic financial institutions, can
identify BMPE dollar payments for exports or services because the BMPE dollar
payments received for the goods or services sold to Colombia or other South
American customers rarely come from the customer directly.&#160; Generally, these BMPE dollar payments
are:&#160; (1) made in the United States or
foreign country with bulk cash (often delivered by local &#147;couriers&#148;);&#160; (2) involve the delivery of structured money
orders, traveler&#146;s checks, cashier&#146;s checks, or bank checks (each usually under
$10,000 in value), (3) involve checks drawn from United States banks in the
name of, or negotiated by, some person or company not readily identifiable with
the United States exporter&#146;s customer; or (4) are in the form of wire transfers
from United States bank accounts that are not in the Colombian or other South
American customer&#146;s name.&#160; Third-party
wire transfers constitute the most common form of BMPE dollar payments.&#160; A common thread in all forms of BMPE payments
is that they rarely come directly from the person or company that ultimately
receives credit for the payment (<u>i.e.,</u> the Colombian importer or
customer).</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">American
Express Bank International&#146;s Remedial Actions</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The criminal investigation into the
beneficial owners of the Targeted Accounts continues.&#160; Throughout this part of the investigation,
AEBI&#146;s cooperation with law enforcement has been outstanding.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI has devoted considerable
resources to correct the identified BSA and AML</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">deficiencies, and employees who failed to take
vigorous action to support compliance efforts have either left AEBI or left
their positions.&#160; AEBI has also
identified, reported, and ultimately closed accounts used to process suspicious
transactions, including each of the Targeted Accounts.&#160; As part of that effort, AEBI has:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Contracted
with AML and BSA compliance experts to:&#160;
(1) assist AEBI in conducting a comprehensive review of AEBI&#146;s BSA and
AML programs; (2) conduct a &#147;look-back&#148; analysis of high-risk accounts and
transactions, and to file SARs where appropriate; and (3)&#160; make recommendations for restructuring AEBI&#146;s
BSA and AML compliance programs, including the development of enhanced BSA and
AML polices and procedures.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Implemented
improved policies related to high-risk accounts.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Enhanced
its Compliance department, staffed by more than 12 full-time employees, who are
exclusively engaged in BSA and AML compliance.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-autospace:none;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Significantly
enhanced its transaction monitoring process.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Conducted
additional training on BMPE and other BSA and AML compliance issues.</p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AEBI is committed to complying with
its BSA and AML responsibilities and to cooperating with law enforcement.</font></p>


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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.2</font></b></p>

<p style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNITED STATES OF AMERICA</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BEFORE</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WASHINGTON, D.C.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the Matter of</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Docket No. 07-017-B-EC</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AMERICAN EXPRESS BANK</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cease and Desist Order and Order of</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Miami, Florida</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assessment of a Civil Money Penalty Issued</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon Consent Pursuant to the Federal</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deposit Insurance Act, as Amended</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
American Express Bank International, Miami, Florida (&#147;AEBI&#148;) is an Edge
corporation organized under Section 25A of the Federal Reserve Act (12 U.S.C. &#167;
611 <u>et</u>  <u>seq</u>.) that offers traditional private banking services
principally to high net worth customers located in Latin America, and is owned
by American Express Bank Limited (&#147;AEB&#148;), a state-chartered corporation which
is supervised by the New York State Banking Department;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
the Board of Governors of the Federal Reserve System (the &#147;Board of Governors&#148;)
and AEBI have the common goal to ensure that AEBI complies with all applicable
federal and state laws, rules, and regulations relating to anti-money
laundering (&#147;AML&#148;), including the Bank Secrecy Act (the &#147;BSA&#148;) (31 U.S.C. &#167;
5311 <u>et</u>  <u>seq</u>.); the rules and regulations issued thereunder by the
U.S. Department of the Treasury (31 C.F.R. Part 103)(the &#147;BSA regulations&#148;);
and the applicable AML requirements of Regulation K of the Board of Governors
(12 C.F.R. &#167;&#167; 211.5(k) and 211.5(m));</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
the Board of Governors and AEBI have mutually agreed to the issuance of this
Order to Cease and Desist and Order of Assessment of a Civil Money Penalty Upon
Consent against AEBI (the &#147;Order&#148;);</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
in 1993, the Board of Governors issued a Consent Order to Cease and Desist (the
&#147;1993 Order&#148;) and a Consent Order of Assessment of a Civil Money Penalty
against AEBI that were designed to address deficiencies relating to safety and
soundness, including but not limited to AEBI&#146;s BSA/AML compliance, corporate
governance and audit; after AEBI made improvements and enhancements in response
to the 1993 Order, the Board of Governors terminated the 1993 Order on January
7, 1997;</font></p>

<p style="font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
the U.S. Department of Justice (&#147;DOJ&#148;) has conducted an investigation that
involved certain accounts and transactions at AEBI for the period between
December 1999 and April 2004.&#160; AEBI has
entered into a Deferred Prosecution Agreement with </font><font face="Times New Roman">DOJ
on August 6, 2007, to resolve </font><font face="Times New Roman">a one-count Information charging AEBI
with failing to maintain an effective AML program in violation of Title 31
United States Code, sections 5318(h)(1) and 5322(b) (31&nbsp;U.S.C. &#167;&#167;
5318(h)(1) and 5322(a)).&#160; In connection
with the Deferred Prosecution Agreement, DOJ issued a &#147;Statement of Facts&#148;
alleging that AEBI&#146;s AML program had serious and systemic deficiencies and that
its transaction monitoring system and internal controls were inadequate to
detect, identify, and report money laundering activity; in addition, DOJ
identified specific instances of suspicious or illicit activity in the form of
drug-related money laundering transactions, accomplished through &#147;Black Market
Peso Exchange&#148; wire transfers that were undertaken as part of an undercover law
enforcement operation;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
in connection with examinations conducted by the Federal Reserve Bank of
Atlanta (the &#147;Reserve Bank&#148;), examiners identified weaknesses in AEBI&#146;s BSA/AML
</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">compliance program, including
deficiencies involving account monitoring.&#160;
In 2004 and 2005, AEBI represented to the Reserve Bank that it was in
the process of implementing new, more sophisticated transaction and account
monitoring, and that it was improving controls with respect to offshore bearer
share personal investment companies (&#147;PICs&#148;) that had accounts at AEBI;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
the Reserve Bank conducted an examination beginning September 2006 of AEBI
focusing on AEBI&#146;s BSA/AML compliance program.&#160;
The examiners found that AEBI had significant breakdowns in carrying out
BSA compliance activities and, as a result, failed to establish and maintain
procedures adequately designed to assure and monitor AEBI&#146;s compliance with the
BSA and BSA regulations.&#160; Specifically,</font></p>

<p style="font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" face="Times New Roman" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">AEBI failed
to adopt and implement comprehensive customer due diligence and enhanced due
diligence processes, particularly regarding high risk customers; AEBI did not
maintain effective control measures for bearer share and other PICs; and AEBI
failed to adhere to its own written policies, including policies requiring
adequate periodic reviews of high risk accounts;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI&#146;s
transaction monitoring system, which AEBI had represented would be an
improvement over the previous system, was inadequate.&#160; The automated system was severely compromised
by data integrity problems and by other deficiencies.&#160; In addition, AEBI failed to establish adequate
management controls over the resolution of identified potentially suspicious
activity.&#160; As a result, AEBI was unable
to identify, monitor and report suspicious activity that reasonable monitoring
would have flagged as warranting review;</p>

<p style="font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" face="Times New Roman" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">AEBI failed
to perform satisfactory independent testing of its BSA/AML compliance program.&#160; In particular, AEBI&#146;s internal audit function
failed to review the implementation of AEBI&#146;s new automated transaction
monitoring system; and</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.</font><font size="1" face="Times New Roman" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">AEBI failed
to provide for adequate oversight of and accountability for its BSA/AML
compliance program by AEBI&#146;s own management and by AEB, which had undertaken to
provide oversight services with respect to </font><font face="Times New Roman">AEBI&#146;s
BSA/AML compliance program;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
as a result of the deficiencies in AEBI&#146;s BSA/AML compliance program, AEBI&#146;s
BSA/AML compliance program failed to meet minimum regulatory requirements and
therefore violated 12 C.F.R. &#167; 211.5(m)(1) and was conducted in an unsafe and
unsound manner;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
AEBI is taking steps to address the unsafe and unsound practices and regulatory
violations described above and has engaged several independent consultants to
assist it in enhancing its BSA/AML policies and procedures, internal control
environment, management oversight, and reporting of suspicious activities;</font></p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
the regulatory violations and unsafe and unsound practices described above
warrant the assessment of civil money penalties by the Board of Governors under
section 8(i)(2)(B) of the Federal Deposit Insurance Act, as amended (12 U.S.C.
&#167; 1818(i)(2)(B)) (the &#147;FDI Act&#148;), and the U.S. Department of the Treasury&#146;s
Financial Crimes Enforcement Network (&#147;FinCEN&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, AEBI has consented to the assessment of a
civil money penalty in the amount of&#160;
Twenty Million dollars ($20,000,000.00) by the Board of Governors
pursuant to section 8(i)(2)(B) of the FDI Act for the unsafe and unsound
practices described above and for violating section 211.5(m)(1) of Regulation K
of the Board of Governors, which penalty will be satisfied by payments made by
AEBI pursuant to the Deferred Prosecution Agreement and pursuant to the civil
money penalty assessed by FinCEN described below;</font></p>


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<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
AEBI has consented to the assessment of a concurrent civil money penalty in the
amount of Twenty Million dollars ($20,000,000) by FinCEN for violations of the
AML program and suspicious activity reporting requirements of the BSA; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, on August
3, 2007, the board of directors of AEBI, at a duly constituted meeting, adopted
resolutions authorizing and directing Mr. Simon Amich, President and Chief
Executive Officer of AEBI,&#160; to enter into
this Order on behalf of AEBI, and consenting to compliance by AEBI and its
institution-affiliated parties, as defined in sections 3(u) and 8(b)(3) of the
FDI Act (12 U.S.C. &#167;&#167;1813(u) and 1818(b)(3)), with each and every applicable
provision of this Order and waiving any and all rights that AEBI may have
pursuant to section 8 of the FDI Act (12 U.S.C. &#167; 1818) to: (i) a hearing for
the purpose of taking evidence on any matters set forth in this Order; (ii)
judicial review of this Order; (iii) contest the issuance of this Order by the
Board of Governors pursuant to section 8 of the FDI Act; and (iv) challenge or
contest, in any manner, the basis, issuance, validity, terms, effectiveness or
enforceability of this Order or any provisions hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE,
before the filing of any notices, or taking of any testimony or adjudication of
or finding on any issues of fact or law herein, and without this Order
constituting an admission by AEBI of any allegation made or implied by the
Board of Governors in connection with this matter, and solely for the purpose
of settling this matter without a formal proceeding being filed and without the
necessity for protracted or extended hearings or testimony and pursuant to the
aforesaid resolution;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IT IS HEREBY
ORDERED, pursuant to sections 8(b)(1), 8(b)(3), and 8(i) of the FDI Act (12
U.S.C. &#167;&#167; 1818(b)(1), 1818(b)(3), and 1818(i)), that AEBI and its
institution-affiliated parties shall cease and desist and take affirmative
actions as follows:</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Primary Contact</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of
this Agreement, AEBI shall designate an officer to be responsible for
coordinating and submitting to the Reserve Bank the written programs, plans,
policies, procedures, and engagement letters required under the terms and
conditions of this Order.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Management Review and Oversight</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(a)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of this Order, the board of
directors of AEBI shall retain an independent consultant acceptable to the
Reserve Bank, or enter into a new or revised engagement with the independent
management consultant previously retained by AEBI, to conduct a review of the
governance and organization of AEBI&#146;s BSA/AML compliance program and the
performance of AEBI&#146;s staff responsible for the BSA/AML compliance program (the
&#147;Management Review&#148;) and to prepare a written report of findings and
recommendations (the &#147;Management Report&#148;).&#160;
The purposes of the Management Review shall be to enhance AEBI&#146;s
oversight of its BSA/AML compliance program and to ensure the adequate staffing
of the program by qualified and trained personnel needed for an effective
control environment.&#160; The terms of the
engagement shall require that the Management Review be completed within 45 days
of the retention of the independent consultant or the new or revised engagement
with the existing management consultant, and that the Management Report be
submitted to the board of directors of AEBI and the Reserve Bank within 10 days
of the completion of the Management Review.&#160;
The Management Review shall, at a minimum, address, consider, and
include:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the duties and
responsibilities of each officer and staff member regarding BSA/AML compliance,
including reporting lines within AEBI and to AEB and business line
accountability;</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">an evaluation of each current senior officer with
responsibilities related to AEBI&#146;s BSA/AML compliance program to determine
whether the individual possesses the ability, experience, and other
qualifications required to competently perform present and anticipated duties,
including the ability to provide appropriate oversight, to ensure compliance
with all applicable laws, rules, and regulations, to adhere to established
policies and procedures, and to comply with the requirements of this Order;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an assessment of the
structure and composition of AEBI&#146;s board of directors and relevant committees
and determination of the structure and composition needed to provide adequate
oversight of the BSA/AML compliance program;</p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the responsibility of the board of directors to
monitor management&#146;s adherence to approved policies and procedures and
applicable laws, rules, and regulations, and to monitor exceptions to approved
policies and procedures;</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the maintenance of adequate and complete minutes of
all meetings of the board of directors and committees of the board and of
management;</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the information to be included in periodic reports
regarding BSA/AML compliance to the board of directors and AEB; and</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the independence and
effective authority of compliance functions and the Compliance Committee.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of the
submission of the Management Report, AEBI shall submit a written plan to the
Reserve Bank that includes a description of the specific actions that AEBI
proposes to take, or has taken, to strengthen the management and oversight of
AEBI&#146;s BSA/AML compliance program.</p>


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<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BSA/AML Compliance Program</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of
this Order, the board of directors of AEBI shall retain an independent
consultant acceptable to the Reserve Bank, or enter into a new or revised
engagement with the independent BSA/AML consultant previously retained by AEBI,
to conduct a review of AEBI&#146;s BSA/AML compliance program (the &#147;BSA/AML Review&#148;)
and to prepare a written report of findings and recommendations (the &#147;BSA/AML
Report&#148;).&#160; The purpose of the BSA/AML
Review shall be to conduct a comprehensive review of AEBI&#146;s BSA/AML compliance
program and make recommendations that will enable AEBI to establish an
effective program that is commensurate with AEBI&#146;s size, products and services,
customers, and geographic locations.&#160; The
terms of the engagement shall require that the BSA/AML Review be completed
within 45 days of the retention of the independent consultant or the new or
revised engagement with the existing BSA/AML consultant, that the BSA/AML
Report be submitted to the board of directors of AEBI and the Reserve Bank
within 10 days of the completion of the BSA/AML Review, and that supporting
material associated with the BSA/AML Review be made available to the Reserve
Bank upon request.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of the
board of directors&#146; receipt of the BSA/AML Report, AEBI shall submit to the
Reserve Bank an acceptable written BSA/AML compliance program that is designed
to ensure compliance with all applicable BSA/AML requirements and is
commensurate with AEBI&#146;s business activities and BSA/AML risk profile.&#160; The program shall include provisions for
updates on an ongoing basis as necessary to incorporate amendments to the BSA
and BSA regulations.&#160; At a minimum, the
program shall include:</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A system of internal
controls designed to ensure ongoing compliance with the BSA, the BSA
regulations, and sections 211.5(k) and 211.5(m) of Regulation K of the Board of
Governors, including but not limited to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>comprehensive customer
due diligence and enhanced due diligence policies, procedures, and practices,
including but not limited to procedures designed to identify account holders;
and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>controls to ensure
compliance with reporting and recordkeeping requirements;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the independent testing
of compliance with the BSA and BSA regulations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adequate resources for
the BSA compliance officer, including sufficient staff levels, to implement and
maintain an effective program for compliance with all applicable BSA/AML
requirements and AEBI&#146;s internal policies and procedures; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>appropriate training to
all staff regarding amendments to BSA/AML requirements and changes in internal
compliance policies and procedures.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Suspicious Activity Reporting and
Customer Due Diligence</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of the
board of directors&#146; receipt of the BSA/AML Report required by paragraph 3 of
this Order, AEBI shall submit to the Reserve Bank an acceptable written
customer due diligence program designed to reasonably ensure the identification
and timely, accurate, and complete reporting of all known or suspected
violations of law against or involving AEBI and suspicious transactions at AEBI
to law enforcement and supervisory authorities as required by applicable
suspicious activity reporting laws and regulations.&#160; At a minimum, the program shall include:</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A methodology for
assigning risk levels to AEBI&#146;s customer base that considers factors such as
type of customer, type of product or service, and geographic location;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a risk-focused
assessment of the AEBI&#146;s customer base that:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i) </font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>identifies the
categories of customers whose transactions and banking activities are routine
and usual;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii) </font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>determines the
appropriate level of enhanced due diligence necessary for those categories of
customers that pose a heightened risk of conducting potentially illicit
activities at or through AEBI; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provides for the
periodic reassessment and update of customer assessment risk-ratings;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>for each customer who
requires enhanced due diligence, procedures to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>determine the
appropriate documentation necessary to ascertain the identity and business
activities of the customer;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>establish risk
mitigation control measures;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>understand the normal
and expected transactions of the customer; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>periodically review the
adequacy of the customer files documentation and obtain updated information as
needed; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>establishment of
procedures and appropriate monitoring criteria designed to ensure proper
identification and timely reporting of all known or suspected violations of law
and suspicious transactions, including, but not limited to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>effective, ongoing
monitoring of customer accounts and transactions;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>appropriate
participation by senior management in the process of identifying, reviewing,
and reporting potentially suspicious activity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii) </font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adequate referral and
escalation of information about potentially suspicious activity through
appropriate levels of management and board committees;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>timely resolution of
escalated issues by senior management and board committees;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adequate procedures to
ensure the timely and complete preparation and filing of Suspicious Activity
Reports; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>maintenance of
sufficient documentation with respect to the investigation and analysis of
suspicious activity, including the resolution and escalation of concerns.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Independent Testing</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 60 days of
this Order, AEBI shall submit to the Reserve Bank an acceptable written plan
for the independent testing of AEBI&#146;s compliance with all applicable BSA/AML
requirements.&#160; At a minimum, the plan
shall address, consider, and include:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The coverage,
frequency, and scope of the independent testing of AEBI&#146;s BSA/AML compliance
program, including but not limited to transactions and account monitoring
policies, procedures, and practices, the integrity of data contained in
internal customer databases, and the transaction monitoring system;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provisions for
independent testing to be performed on a regular basis by qualified parties who
are knowledgeable of BSA/AML requirements and are independent of the business
lines and compliance function;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures for the
review of independent testing results by senior AEBI management and escalation
to the board of directors and board committees, as appropriate; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures to ensure
that AEBI management institute and complete appropriate actions in response to
the independent testing results.</p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transaction
Monitoring System</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 90 days of
this Order, AEBI shall complete the project designed to enhance the information
contained in its internal customer database related to specific risk attributes
of clients, to use this database as the source of customer data to determine
the risk level of its clients, and to identify its high-risk accounts for its
BSA/AML compliance program.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(a)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of the board of directors&#146;
receipt of the BSA/AML Report required by paragraph 3 of this Order, AEBI shall
submit to the Reserve Bank acceptable written customer account and transaction
monitoring policies and procedures that are designed to effectively manage
legal and reputational risks, and ensure compliance with regulatory
requirements.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 90 days of this
Order, AEBI shall submit to the Reserve Bank an acceptable written plan,
including a timetable, for the full installation, testing, and activation of an
improved transaction monitoring system.&#160;
The plan shall also include a methodology and target date for
determining that the transaction monitoring system is effective.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The acceptable policies
and procedures submitted pursuant to paragraph 8(a) of this Order shall take
effect upon the determination by a competent independent outside consultant
acceptable to the Reserve Bank, or the independent BSA/AML consultant
previously retained by AEBI, that the transaction monitoring system described
in paragraph 8(b) of this </p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Order is fully effective.&#160; Documentation to support the determination
that the new transaction monitoring system is fully effective shall be retained
for subsequent supervisory review.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The interim transaction
monitoring procedures adopted by AEBI in 2007 shall remain in effect until the
independent outside consultant or the existing BSA/AML consultant described in
paragraph 8(c), confirms, through the performance of appropriate tests, that
the improved transaction monitoring system is fully effective.</p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transaction
Review</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of
this Order, AEBI shall engage an independent consultant acceptable to the
Reserve Bank, or enter into a new or revised engagement with the independent
BSA/AML consultant previously retained by AEBI,&#160;
to conduct a review of account and transaction activity to determine
whether suspicious activity involving accounts or transactions at, by, or
through AEBI was properly identified and reported in accordance with applicable
suspicious activity reporting regulations (the &#147;Transaction Review&#148;) and to
prepare a written report detailing the consultant&#146;s findings (the &#147;Transaction
Review Report&#148;).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of the
engagement of the independent consultant, or the entry into a new or revised
engagement with AEBI&#146;s existing BSA/AML consultant, but prior to the
commencement of the Transaction Review, AEBI shall submit to the Reserve Bank
for approval an engagement letter that sets forth:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The scope of the
Transaction Review, including, but not limited to, a review of high risk
accounts;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the methodology for
conducting the Transaction Review, including any sampling procedures to be
followed;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the expertise and
resources to be dedicated to the Transaction Review;</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">13</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the anticipated date of
completion of the Transaction Review and the Transaction Review Report; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a commitment that
supporting material associated with the Transaction Review will be made
available to the Reserve Bank upon request.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Transaction Review
shall cover the time period from January 1, 2007, to&#160; June 30, 2007.&#160; Based on the Reserve Bank&#146;s evaluation of the
Transaction Review, the Reserve Bank may, in its discretion, direct AEBI to
extend the Transaction Review to include time periods subsequent to January 1,
2006, with the scope and methodology for any such extension to be determined in
the same manner as described in the preceding paragraph of this Order.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI shall provide to
the Reserve Bank a copy of the Transaction Review Report at the same time that
the report is provided to AEBI.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Throughout the
Transaction Review, AEBI shall ensure that all matters or transactions required
to be reported that have not previously been reported are reported in
accordance with applicable rules and regulations.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If, while this Order is
in effect, AEB, AEBI, or their parent companies are parties to a definitive
contract to sell AEB or AEBI, or otherwise transfer substantially all of AEBI&#146;s
assets and liabilities to an unaffiliated third-party, AEBI shall take all
steps necessary to ensure that, notwithstanding the proposed sale or other
transfer, (i) the Transaction Review and Transaction Review Report will be
completed as required by this Order; (ii) the consultant who is conducting the
Transaction Review will continue to have reasonable access to all records that
are needed to complete the Transaction Review and the Transaction Review
Report; and (iii) supporting material associated with the Transaction Review
will continue to be available to the Reserve Bank upon request.</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">14</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Civil Money Penalty Assessment</font></b></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Board of
Governors hereby assesses AEBI a civil money penalty in the amount of Twenty
Million dollars ($20,000,000.00).</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16. </font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The civil money
penalty assessed pursuant to paragraph 15 of this Order shall be concurrent
with the penalty of Twenty Million dollars ($20,000,000.00) assessed against
AEBI by FinCEN, and shall be fully satisfied upon payment by AEBI of the civil
money penalty assessed by FinCEN against AEBI and of the forfeiture called for
under the Deferred Prosecution Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Compliance
with Order</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
15 days after the end of each calendar quarter following the date of this
Order, AEBI shall submit to the Reserve Bank written progress reports detailing
the form and manner of all actions taken to secure compliance with the
provisions of this Order and the results thereof.&#160; The Reserve Bank may, in writing, discontinue
the requirement for progress reports or modify the reporting schedule.</p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Approval of Programs and Procedures</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(a)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AEBI shall submit the
written policies, procedures, programs, plans, and engagement letters that are
acceptable to the Reserve Bank within the applicable time period set forth in
paragraphs 4, 5, 6, 8(a), 8(b), and 10 of this Order.&#160; Independent consultants acceptable to the
Reserve Bank shall be retained by AEBI, or new or revised engagements shall be
executed by AEBI with existing consultants, within the period set forth in
paragraphs 2, 3, and 9 of this Order.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of
approval by the Reserve Bank, AEBI shall adopt the policies, procedures,
programs, plans, and engagement letters.&#160;
Upon adoption, AEBI shall </p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">15</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">implement the approved
policies, procedures, programs, and plans, and thereafter fully comply with
them.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>During the term of this
Order, the approved policies, procedures, programs, plans, and engagement
letters shall not be amended or rescinded without the prior written approval of
the Reserve Bank.</p>

<p style="line-height:normal;margin:0pt 0pt 12.0pt;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Communications</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt 36.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All communications
regarding this Order shall be sent to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.
Robert M. Schenck</p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice
President</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Federal
Reserve Bank of Atlanta</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1000 Peachtree
Street, N.E.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Atlanta,
Georgia&#160; 30309-4470</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.
Simon Amich</p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Chief
Executive Officer</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank
International</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1111
Brickell Avenue</font></p>

<p style="margin:0pt 0pt 12.0pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Miami, Florida 33131</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Miscellaneous</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
any provision of this Order to the contrary, the Reserve Bank may, in its sole
discretion, grant written extensions of time to AEBI to comply with any
provision of this Order.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Order shall be binding upon AEBI and all of their
institution-affiliated parties, in their capacities as such, and their
successors and assigns.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each provision of this
Order shall remain effective and enforceable until stayed, modified, terminated
or suspended by the Reserve Bank.&#160; If
while this Order is in effect, AEB, AEBI, or their parent companies are parties
to a definitive contract to sell AEB or AEBI, or otherwise transfer
substantially all of AEBI&#146;s assets and liabilities to an unaffiliated
third-party, </p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">16</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AEBI shall promptly
notify the Reserve Bank, which shall have discretion to stay, modify, terminate
or suspend any or all of the provisions of this Order.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The provisions of this
Order shall not bar, estop or otherwise prevent the Board of Governors, the
Reserve Bank, or any other federal or state agency from taking any other action
affecting AEBI or any of its current or former institution-affiliated parties
and their successors and assigns.</p>

<p style="font-size:10.0pt;line-height:normal;margin:0pt 0pt 24.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By
order of the Board of Governors of the Federal Reserve System, effective this 6</font><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font face="Times New Roman">&#160;day of&#160; August, 2007.</font></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;">
 <tr style="page-break-inside:avoid;">
  <td width="352" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:264.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableLeft --><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BOARD OF GOVERNORS OF THE</font></p>
  </td>
  <td width="2" style="border:none;font-size:1.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="352" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:264.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;FEDERAL RESERVE SYSTEM</font></p>
  </td>
  <td width="2" style="border:none;font-size:1.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="352" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:264.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" style="border:none;font-size:10.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="352" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:264.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" style="border:none;font-size:10.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="22" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.8pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->By:</p>
  </td>
  <td width="210" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:157.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Simon Amich</font></p>
  </td>
  <td width="119" valign="top" style="padding:0pt .7pt 0pt 0pt;width:89.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="195" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:146.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Jennifer J. Johnson</font></p>
  </td>
  <td width="105" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:79.1pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.8pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="334" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:250.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Simon Amich</font></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jennifer J.
  Johnson</font></p>
  </td>
  <td width="2" style="border:none;font-size:1.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.8pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="334" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:250.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Chief Executive Officer</font></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Secretary of the
  Board</font></p>
  </td>
  <td width="2" style="border:none;font-size:1.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.8pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="334" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:250.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank International</font></p>
  </td>
  <td width="321" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:240.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2" style="border:none;font-size:1.0pt;padding:0pt 0pt 0pt 0pt;"><p style="margin:0pt 0pt .0001pt;">&nbsp;</p></td>
 </tr>
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<DESCRIPTION>EX-99.3
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<h1 align="right" style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.3</font></b></h1>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UNITED
STATES OF AMERICA</font></b></h1>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEPARTMENT
OF THE TREASURY</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FINANCIAL
CRIMES ENFORCEMENT NETWORK</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><b>IN THE MATTER OF:</b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Number 2007- 1</font></b></p>
  </td>
 </tr>
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  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMERICAN EXPRESS BANK INTERNATIONAL</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MIAMI, FLORIDA</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMERICAN EXPRESS TRAVEL RELATED</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SERVICES COMPANY, INC.</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SALT LAKE CITY, UTAH</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.6%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.08%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">)</font></b></p>
  </td>
  <td width="34%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ASSESSMENT
OF CIVIL MONEY PENALTY</font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INTRODUCTION</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the
authority of the Bank Secrecy Act and regulations issued pursuant to that Act,(1)
the Financial Crimes Enforcement Network has determined that grounds exist to
assess a civil money penalty against American Express Bank International,
Miami, Florida, (&#147;the Bank&#148;) and American Express Travel Related Services
Company, Inc., Salt Lake City, Utah, (collectively, &#147;American Express&#148;).&#160; To resolve this matter, and only for that
purpose, American Express has entered into a CONSENT TO THE ASSESSMENT OF CIVIL
MONEY PENALTY (&#147;CONSENT&#148;) without admitting or denying the determinations by
the Financial Crimes Enforcement Network, as described in Sections III and IV
below, except as to jurisdiction in Section II below, which is admitted.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The CONSENT is
incorporated into this ASSESSMENT OF CIVIL MONEY PENALTY (&#147;ASSESSMENT&#148;) by this
reference.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>JURISDICTION</p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank International is an Edge Act corporation
organized under section 25A of the Federal Reserve Act.&#160; The Board of Governors of the Federal Reserve
System (&#147;Federal Reserve&#148;) is the federal functional regulator for American
Express Bank International and examines the Bank for compliance with the Bank
Secrecy Act, its implementing regulations, and similar rules under Title 12 of
the United States Code.</font></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)31 U.S.C. &#167; 5311 et seq. and 31 C.F.R. Part 103.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express
Travel Related Services Company is a money services business, located in Salt
Lake City, Utah, that issues, sells and redeems traveler&#146;s checks, exchanges
currency and provides check cashing and money transmission services, within the
United States and U.S. Territories.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At all relevant times, the aforementioned American
Express entities were &#147;financial institutions&#148; within the meaning of the Bank
Secrecy Act and the regulations issued pursuant to that Act.(2)</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">III.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DETERMINATIONS</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:avoid;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Summary</u></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express
Bank International&#146;s anti-money laundering program was deficient in three of
the four core elements.&#160; Namely, the Bank
failed to implement adequate internal controls, failed to conduct adequate
independent testing, and failed to designate compliance personnel to ensure compliance
with the Bank Secrecy Act.&#160; American
Express Bank International&#146;s high-risk customer base, product lines, and international
jurisdiction of operations required elevated measures to manage the risk of
money laundering and other financial crimes.&#160;
Nevertheless, the Bank conducted business without adequate systems and
controls reasonably designed to manage the risk of money laundering, including the
potential for Black Market Peso Exchange(3) transactions that may be used by
Colombian drug cartels to launder the proceeds of narcotics sales. &#160;American Express Bank International&#146;s failure
to comply with the Bank Secrecy Act and the regulations issued pursuant to that
Act were serious, repeated and systemic.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, a
review by the Financial Crimes Enforcement Network of American Express Travel
Related Services Company revealed a substantial number of failures to file timely,
accurate and complete suspicious activity reports involving over $500 million in
suspicious transactions.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Violations
of the Requirement to Implement an Anti-Money Laundering Program</u></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express
Bank International provides traditional private banking services, including
secured lending and asset management to a target customer base of high
net-worth individuals and their businesses throughout Latin America.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Financial
Crimes Enforcement Network determined that American Express Bank International
violated the requirement to establish and implement an adequate anti-money
laundering program.&#160; Since April 24,
2002, the Bank Secrecy Act and its implementing regulations have required banks
to establish and implement anti-money laundering programs.(4)&#160; The anti-money laundering program of American
Express Bank International would meet these requirements if the program conforms
to rules of the Federal Reserve that govern anti-money laundering
programs.&#160; The Federal Reserve has
required a program reasonably designed to assure </font></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2) 31 U.S.C. &#167; 5312(a)(2) and 31 C.F.R. &#167; 103.11.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3) See <u>FinCEN Advisory Issue 9</u> (November 1997)
and <u>FinCEN Advisory Issue 12</u> (June 1999), at www.fincen.gov.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4) 31 U.S.C. &#167;
5318(h)(1) and 31 C.F.R. &#167; 103.120.</font></p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and monitor compliance
with reporting and record keeping requirements under the Bank Secrecy Act.(5)&#160; Reporting requirements under the Bank Secrecy
Act include the requirement to report suspicious transactions.(6)&#160; The Board of Governors of the Federal Reserve
System also requires that an anti-money laundering program contain the
following elements: (1) system of internal controls; (2) independent testing
for compliance; (3) designation of an individual, or individuals, to coordinate
and monitor day-to-day compliance; and (4) training of appropriate personnel.(7)</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 90.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font>Internal Controls</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank
International failed to implement internal controls reasonably designed to comply
with the Bank Secrecy Act.&#160; American
Express Bank International conducted business without adequate systems and
controls, as appropriate and practical, to detect and timely report suspicious
activity.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank
International did not implement adequate polices, procedures and internal
controls across the institution, particularly with regard to customers presenting
a higher risk for money laundering. &#160;The
Bank repeatedly failed, over the course of multiple regulatory examinations
dated June 2, 2003, July 6, 2004, July 11, 2005, and September 12, 2006, with increasingly
adverse findings, to implement effective account monitoring controls to ensure
compliance with the Bank Secrecy Act.&#160;
For example:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font>Review parameters for
customer account activity were not risk focused, nor designed to target
specific account activity with an elevated potential for money laundering;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font>Review parameters for transaction
activity in a number of customer accounts were set at a high or excessive level,
thereby substantially reducing the likelihood that suspicious activity would be
detected;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font>Processes for exempting certain
accounts from transaction monitoring reviews to detect suspicious activity lacked
any written justification or rationale for the exemptions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font>Measures to fully identify
account relationships involving Private Investment Companies (PICs) and bearer
share accounts, to assess and manage the potential risk for money laundering in
these accounts were not effectively implemented; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font>Periodic
reviews of high-risk accounts, to determine whether account activity deviated
from expected activity in customer profiles, were not conducted in a manner to adequately
detect and report suspicious activity, or in accordance with Bank policy.&#160; Furthermore, these periodic reviews were
conducted on an individual account level, as opposed to an entire aggregate
customer relationship basis.&#160; As a
result, when a customer maintained multiple accounts, aggregate activity across
these accounts was not captured and analyzed to gain a complete picture of the
potential for money laundering and other illicit activity.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The internal control
processes governing the suspicious activity reporting program at American
Express Bank International were not sufficient to comply with the Bank Secrecy Act.</font></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5) 12 C.F.R. &#167; 208.63(b)(1) and 12 C.F.R. &#167; 211.5(m).</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6) 31 C.F.R. &#167; 103.18.</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7) 12 C.F.R. &#167;
208.63(c)(1) - (4) and 12 C.F.R. &#167; 211.5(m).</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The monitoring
system for suspicious activity reporting compliance at the Bank exhibited persistent
data integrity issues.&#160; These issues were
so serious that American Express Bank International suspended use of the system
in early 2007, and implemented an interim monitoring system, pending correction
of data integrity issues and review of system thresholds for suspicious
activity monitoring.&#160; In addition, in
September 2006, prior to suspending the use of the suspicious activity
monitoring system, the Bank had a backlog of hundreds of suspicious activity
alerts awaiting review.&#160; Furthermore, one
individual had authority to unilaterally clear suspicious activity alerts
without adequate oversight or controls to ensure appropriate and timely
disposition of the alerts.&#160; As a result
of these problems, American Express Bank International failed to file timely
suspicious activity reports.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 90.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font>Independent Testing</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express
Bank International&#146;s independent testing of its Bank Secrecy Act program was
ineffective.&#160; Internal Audit Staff lacked
sufficient training and knowledge to facilitate compliance with the Bank
Secrecy Act.&#160; Audit scopes were not
always tailored or designed to capture and test for compliance with certain
requirements of the Bank Secrecy Act.&#160; Internal
Audit staff also failed to conduct sufficient customer transaction testing to adequately
evaluate the overall sufficiency of the anti-money laundering program at the
Bank.&#160; Furthermore, Internal Audit failed
to assist management with tracking and following-up on previously identified
regulatory examination deficiencies.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, Internal Audit
failed to conduct adequate testing of the suspicious activity monitoring system
or identify the numerous data integrity concerns associated with this system
for an extended period of time.&#160; The ineffectiveness
of the Internal Audit function at American Express Bank International
contributed to the failure to identify significant deficiencies in this system
before 2007.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 90.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font>Designation of an Individual
or Individuals to Ensure Compliance with the Bank Secrecy Act</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In view of the
scope, volume and nature of activity at American Express Bank International,
management failed to designate enough personnel to ensure day-to-day compliance
with the Bank Secrecy Act.&#160; Furthermore, compliance
roles and responsibilities were not adequately defined and implemented with
respect to gathering, integrating and responding to information such as validating
customer records, reconciling data involving high-risk customers with customer
profile documentation, and escalating or sharing identified negative customer
information among appropriate personnel at the Bank.&#160; For example, management failed to ensure that
compliance personnel independently validated customer information provided by
the account relationship managers, and periodic customer account reviews did
not document an analysis of transactional activity for deviations from expected
activity.&#160; In addition, reviews performed
by compliance personnel were conducted on a singular account basis rather than
in the context of a customer&#146;s entire relationship with the Bank.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Violations
of the Requirement to Report Suspicious Transactions</u></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Financial
Crimes Enforcement Network has determined that American Express violated the
suspicious transaction reporting requirements of the Bank Secrecy Act and
regulations issued pursuant to that Act.&#160; These
reporting requirements impose an obligation on financial institutions to report
transactions that involve or aggregate to at least $5,000, are conducted by,
at, or through the financial institution, and that the institution &#147;knows, suspects,
or has reason to suspect&#148; are suspicious.(8)&#160;
A transaction is &#147;suspicious&#148; if the transaction: (1) involves funds
derived from illegal activities, or is conducted to disguise funds derived from
illegal activities; (2) is designed to evade the reporting or record keeping
requirements of the Bank Secrecy Act or regulations under the Bank Secrecy Act;
or (3) has no business or apparent lawful purpose and the financial institution
knows of no reasonable explanation for the transaction after examining the
available facts, including background and possible purpose of the transaction.(9)</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Financial
institutions must report suspicious transactions by filing suspicious activity
reports and must generally do so no later than thirty (30) calendar days after
detecting facts that may constitute a basis for filing such reports.(10)&#160; If no suspect was identified on the date of
detection, a bank may delay the filing for an additional thirty (30) calendar
days in order to identify a suspect, but in no event may the bank file a
suspicious activity report more than sixty (60) calendar days after the date of
initial detection.(11)</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express violated
the suspicious transaction reporting requirements of 31 U.S.C. &#167; 5318(g) and 31
C.F.R. &#167; 103.18 or 31 C.F.R. &#167; 103.20, by failing to timely and/or accurately file
a substantial number of suspicious activity reports.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Financial
Crimes Enforcement Network determined that American Express Travel Related
Services Company failed to timely file over 1,000 Suspicious Activity Report by
Money Services Business forms (&#147;SAR-MSB&#148;), during the period from May 7, 2006 through
May 7, 2007, with suspicious transactions totaling over $500 million.&#160; Furthermore, a total of 1,639 SAR-MSBs filed
by American Express Travel Related Services Company, between May 7, 2006 and
May 7, 2007, were found to contain over 2,000 errors.&#160; Numerous filings contained multiple errors
where sections of the form requiring data were left blank, incorrectly
completed, or referred to another section of the form that lacked the
referenced information.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express
Travel Related Services Company often completed critical reporting fields by referencing
the narrative portion of the form, or attachments, in direct contradiction to
the form instructions.&#160; The SAR-MSB
filing instructions explain how reporting fields are to be populated so data is
retrievable and available to law enforcement.&#160;
Contrary to the instructions on </font></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(8) 31 C.F.R. &#167; 103.18(a)(2) and 31 C.F.R. &#167;
103.20(a)(3).&#160; For purposes of 31 C.F.R.
&#167; 103.20(a)(3), the $5,000 aggregate threshold applies to suspicious
transactions derived from a review of clearance records of money orders or
travelers checks that have been sold or processed by an issuer.&#160; All other suspicious transactions require
reporting when the transaction aggregates to $2,000 as defined under 31 C.F.R.
&#167; 103.20(a)(2).</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(9) 31 C.F.R. &#167; 103.18(a)(2)(i) - (iii) and 31 C.F.R.
&#167; 103.20(a)(2)(i) &#150; (iii).&#160; 31 C.F.R. &#167;
103.20(a)(2)(iv) also defines a transaction as suspicious when it involves use
of the money services business to facilitate criminal activity.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(10) 31 C.F.R. &#167; 103.18 and 31 C.F.R. &#167; 103.20.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(11) 31 C.F.R. &#167;
103.18(b)(3).</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the form, American
Express Travel Related Services Company utilized phrases such as &#147;See Narrative&#148;
and &#147;See Attachment&#148; in contradiction of the obligation to complete multiple
Part I Subject Information reporting fields and PART III Transaction Location
Information reporting fields in the SAR-MSBs even when the information to
complete the required fields was known. &#160;Moreover, there were multiple instances where
the narrative portion of the form was referenced in a field that required specific
data.&#160; However, in some instances the
narrative portion did not contain any information relating to the blank
reporting field, thereby significantly undermining the purpose of the required
reporting fields to make information available for use in investigations by government
authorities.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The above
described delays and errors impaired the usefulness of the suspicious activity
reports by not providing law enforcement with more timely and accurate
information related to over $500 million in suspicious transactions.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IV.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CIVIL MONEY PENALTY</p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the authority of the Bank Secrecy Act and the regulations issued
pursuant to that Act,(12) the Financial Crimes Enforcement Network has
determined that a civil money penalty is due for violations of the Bank Secrecy
Act, and the regulations issued pursuant to that Act, as described in this
ASSESSMENT.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Based
on the seriousness of the violations at issue in this matter, and the financial
resources available to American Express, the Financial Crimes Enforcement
Network has determined that the appropriate penalty in this matter is </font>$25,000,000.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">V.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONSENT TO ASSESSMENT</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To resolve this
matter, and only for that purpose, American Express Bank International and
American Express Travel Related Services Company, without admitting or denying
either the facts or determinations described in Sections III and IV above,
except as to jurisdiction in Section II, which is admitted, consent to the
assessment of a civil money penalty in the aggregate sum of $25,000,000, of
which $20,000,000 is allocated to American Express Bank International and
$5,000,000 is allocated to American Express Travel Related Services.&#160; This assessment is being issued concurrently
with the Deferred Prosecution Agreement and accompanying $55,000,000 forfeiture
by the Department of Justice against American Express Bank International, and a
Cease and Desist Order and $20,000,000 civil money penalty by the Federal
Reserve against American Express Bank International.&#160; As for the method of payment, the $25,000,000
civil money penalty by the Financial Crimes Enforcement Network shall be deemed
as satisfied by a single $10,000,000 payment to the Department of the
Treasury.&#160; The remaining $15,000,000 of
the Financial Crimes Enforcement Network&#146;s penalty against American Express
Bank International shall be deemed as satisfied by a portion of the $55,000,000
forfeiture to the Department of Justice.&#160;
American Express agrees to pay the amount of $10,000,000 within five (5)
business days of this ASSESSMENT to the Department of the Treasury.</font></p>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;"></div>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(12) 31 U.S.C. &#167; 5321 and
31 C.F.R. &#167; 103.57.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express recognizes
and states that they enter into the CONSENT freely and voluntarily and that no
offers, promises, or inducements of any nature whatsoever have been made by the
Financial Crimes Enforcement Network or any employee, agent, or representative
of the Financial Crimes Enforcement Network to induce American Express to enter
into the CONSENT, except for those specified in the CONSENT.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express understands
and agrees that the CONSENT embodies the entire agreement between American
Express and the Financial Crimes Enforcement Network relating to this
enforcement matter only, as described in Section III above.&#160; American Express further understands and
agrees that there are no express or implied promises, representations, or
agreements between American Express and the Financial Crimes Enforcement Network
other than those expressly set forth or referred to in this document and that
nothing in the CONSENT or in this ASSESSMENT is binding on any other agency of
government, whether federal, state, or local.</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:24.0pt 0pt 12.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VI.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>RELEASE</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express understands
that execution of the CONSENT, and compliance with the terms of this ASSESSMENT
and the CONSENT, constitute a complete settlement and release of civil
liability for the violations of the Bank Secrecy Act and regulations issued
pursuant to that Act as described in the CONSENT and this Assessment against American
Express.&#160; American Express further
understands that the release from civil liability for violations of the Bank
Secrecy Act and regulations issued pursuant to that Act by American Express
Travel Related Services Company pertains only to suspicious activity reporting
violations involving the issuance, sale and redemption of traveler&#146;s checks, as
described in the CONSENT and this ASSESSMENT.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="31%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:31.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ James H. Freis, Jr.</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James H. Freis, Jr., Director</font></p>
  </td>
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  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FINANCIAL CRIMES ENFORCEMENT NETWORK</font></p>
  </td>
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  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">U.S. Department of the Treasury</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <td width="46%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:31.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">August 6, 2007</font></p>
  </td>
  <td width="15%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>a07-21089_2ex99d4.htm
<DESCRIPTION>EX-99.4
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.4</font></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEW YORK STATE BANKING DEPARTMENT</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEW YORK, NEW YORK</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->AMERICAN EXPRESS BANK LTD.</p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New York</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WRITTEN AGREEMENT</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEW YORK STATE BANKING DEPARTMENT</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New York</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.64%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the New York State Banking Department (&#147;Department&#148;)
recently conducted an examination of American Express Bank, Ltd. (&#147;Bank&#148;) and
determined that there are deficiencies in the Bank&#146;s compliance with applicable
federal and state laws, rules, and regulations relating to anti-money
laundering (&#147;AML&#148;)&#160; policies, procedures,
and practices, including the Bank Secrecy Act (&#147;BSA&#148;) (31 U.S.C.&#167; 5311 <u>et</u>
<u>seq</u>.); the rules and regulations promulgated thereunder by the U.S.
Department of the Treasury (31 C.F.R. Part 103); and those of the New York
State Banking Department (the &#147;Department&#148;) (3 N.Y.C.R.R. Part 300) (collectively,
&#147;BSA/AML Requirements&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Bank provides
significant international wire transfer services and correspondent banking
services, and the Department has determined that there are compliance and risk
management deficiencies at the Bank in these operational areas;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, it is the common goal of the Department and
the Bank to ensure that the Bank fully addresses all deficiencies in the Bank&#146;s
policies, procedures and procedures, internal control environment, compliance
staffing, training, customer due diligence practices and suspicious activity
reporting with respect to BSA/AML Requirements; and</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Bank has begun to take steps to address
the deficiencies described above;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, on August &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2007, the board of directors of the Bank, at a duly constituted meeting,
adopted a resolution authorizing and directing WRichard Holmes, Chairman and
Chief Executive Officer, to enter into this Written Agreement (&#147;Agreement&#148;) on
behalf of the Bank, and consenting to compliance by the Bank with each
provision of this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, the Department and the Bank hereby
agree as follows:</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Primary Contact</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of this Agreement, the Bank
shall designate an officer to be responsible for coordinating and submitting to
the Department the written programs, plans, procedures, and engagement letter
required under the terms and conditions of this Agreement.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Anti-Money Laundering Compliance</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 60 days of this Agreement, the Bank
shall submit to the Department an acceptable written compliance program for the
Bank that is designed to improve the Bank&#146;s internal controls to ensure
compliance with BSA/AML Requirements. The program shall include provisions for
updates on an ongoing basis as necessary to incorporate amendments to the BSA/AML
Requirements.&#160; At a minimum, the program
shall include:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>improvements to the Bank&#146;s system of internal controls for foreign
correspondent banking in order to ensure compliance with all recordkeeping and
reporting requirements;</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>controls
designed to ensure compliance with all requirements relating to correspondent
accounts for non-U.S. persons;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assessment of legal and reputational risks associated with the Bank&#146;s correspondent
banking and funds transfer clearing activities; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adequate
resources for the BSA/AML compliance officer, including sufficient staff
levels, to implement and maintain an effective program for compliance with
BSA/AML Requirements, and the Bank&#146;s internal policies and procedures.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Suspicious Activity Reporting and Customer Due Diligence</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 60 days of this Agreement, the Bank
shall submit to the Department an acceptable written customer due diligence
program designed to reasonably ensure the identification and timely, accurate,
and complete reporting of all known or suspected violations of law and
suspicious transactions against or involving the Bank to law enforcement and
supervisory authorities as required by BSA/AML Requirements. At a minimum, the
program shall include:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
methodology for assigning risk levels to the Bank&#146;s customer base, including correspondent
account holders, that considers factors such as type of customer, type of
product or service, and geographic location;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
risk-focused assessment of the Bank&#146;s customer base that:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>identifies the categories of customers whose
transactions and banking activities are routine and usual; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>determines the appropriate level of enhanced
due diligence necessary for those categories of customers that pose a
heightened</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">risk
of conducting potentially illicit activities at or through the Bank;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>for
each customer who requires enhanced due diligence, procedures to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>determine the appropriate documentation
necessary to verify the identity and business activities of the customer;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>understand the normal and expected
transactions of the customer based on appropriate criteria;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provide for a periodic review of the
parameters of expected account activity; and.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>review all international customer account
files for the adequacy and timeliness of account documentation, and, where
necessary, correct any deficiencies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures
to ensure that the results of the risk assessment are communicated to senior management
so that it is aware of the risk profile of the customer base;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>for
correspondent accounts established, maintained, administered, or managed in the
United States for a non-U.S. financial institution, procedures that are
designed to ensure compliance with applicable due diligence and other
requirements (including the provisions of 31 C.F.R. &#167;&#167; 103.176 and 103.177),
and that, at a minimum, provide for:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>obtaining and maintaining appropriate information
about the respondent, its business operations, markets served, customer base,
and its AML policies and procedures, particularly with respect to its customer
relationships, that may present a heightened risk of money laundering or other
concerns; and</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ensuring that correspondent banking services
provided by the Bank are reviewed and approved by senior management, and are
subject to appropriate ongoing review;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
establishment of policies and procedures and appropriate monitoring criteria to
ensure the proper detection and timely and complete reporting of all known or
suspected violations of law and suspicious or unusual transactions, including,
but not limited to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>effective monitoring of customer accounts and
transactions, including transactions conducted through correspondent accounts;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>participation by appropriate levels of
management in the process of identifying, reviewing, documenting and reporting
potentially suspicious activity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adequate escalation of information about potentially suspicious
activity through appropriate levels of management;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adequate procedures to ensure the accurate, timely and complete
preparation and filing of Suspicious Activity Reports (&#147;SARs&#148;);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a requirement that the investigation and resolution of all
system-generated alerts are appropriately resolved, documented, and , where
necessary, appropriately escalated;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures to ensure that suspicious transaction referrals are tracked
and reconciled to ensure that they result in the filing of a timely SAR or a
documented decision not to file; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>policies and procedures describing actions to be taken in the event of
(1) the filing of multiple SARs for the same customer, and (2) </p>


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<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the failure of a
correspondent banking customer to provide requested due diligence information,
including the procedures to be followed in determining whether and when an
account should be closed.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Independent
Testing</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 60 days of
this Agreement, the Bank shall submit to the Department an acceptable written
plan for independent testing of the Bank&#146;s compliance with BSA/AML Requirements,
to be performed on a regular basis by qualified persons who are independent of
the Bank&#146;s business lines and compliance functions. This function may be
performed by Internal Audit. &#160;At a
minimum, the plan shall include:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures to evaluate
the Bank&#146;s compliance with BSA/AML Requirements, including the performance of
customer due diligence and the monitoring of customer activity to ensure
compliance with applicable suspicious activity reporting requirements;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures for the
review of independent testing results by senior management and escalation to
the Bank&#146;s board of directors in appropriate circumstances;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures to ensure
that senior management institutes and completes appropriate actions in response
to the independent testing results;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures to ensure
that independent testing results are communicated to the Department on a
regular basis and retained for subsequent supervisory review; and</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>procedures to review
the adequacy and effectiveness of the Bank&#146;s training programs to ensure that
appropriate personnel possess the requisite knowledge to comply with BSA/AML
Requirements and relevant internal policies and procedures.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transaction Monitoring System</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(a)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
45 days of this Agreement, the Bank shall submit to the Department an
acceptable written plan, including a timetable, for a review, enhancement and
verification of the adequacy of the transaction monitoring system by a qualified,
independent consultant (&#147;Consultant&#148;) acceptable to the Department. The plan
shall also include a methodology and target date for the Consultant&#146;s determination
that the transaction monitoring system is effective.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
60 days of this Agreement, the Bank shall submit to the Department acceptable
written customer account and transaction monitoring policies and procedures
that are designed to effectively manage legal and reputational risks and ensure
compliance with legal and regulatory requirements.&#160; The acceptable policies and procedures shall
take effect upon the determination by the Consultant that the improved
transaction monitoring system is fully effective. Documentation to support the
determination that the improved transaction monitoring system is fully
effective shall be retained for subsequent supervisory review.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Interim Transaction Monitoring Procedures</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of this Agreement, the Bank
shall submit to the Department acceptable written interim transaction
monitoring procedures for the Bank that shall remain in</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">effect until the Consultant confirms, through the performance of
appropriate tests, that the enhanced transaction monitoring system is fully
effective.&#160; These interim procedures
shall be designed to monitor the transactions of the Bank so that it can comply
with applicable suspicious activity reporting requirements.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transaction Review</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 30 days of this Agreement, the Bank
shall engage a qualified independent firm (the &#147;Independent Firm&#148;) (which may
be the same consultant described in paragraph&#160;
4(a)), acceptable to the Department, to conduct a review of account and
transaction activity during the time period July 1, 2006 through December 31,
2006 to determine whether suspicious activity involving accounts or
transactions at, by, or through the Bank was properly identified and reported
in accordance with applicable suspicious activity reporting laws and regulations
(the &#147;Transaction Review&#148;), and to prepare a written report detailing the
Independent Firm&#146;s findings (the &#147;Independent Firm&#146;s Report&#148;). The Department
may, based on its evaluation of the results of the Transaction Review, direct
the Bank to engage the Independent Firm to expand the scope of the Transaction
Review to include an additional period or periods of time, and to prepare a
second report of findings. The scope and methodology for such expanded review
shall be determined in the same manner as described in paragraph 8 of this
Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within 10 days of the engagement of the
Independent Firm, but prior to the commencement of the Transaction Review, the
Bank shall submit to the Department an acceptable engagement letter that sets
forth:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
scope of the Transaction Review, including the types of accounts and
transactions to be reviewed;</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
methodology for conducting the Transaction Review, including any sampling
procedures to be followed;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
expertise and resources to be dedicated to the Transaction Review;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
anticipated date of completion of the Transaction Review and the Independent
Firm&#146;s Report; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
commitment on the part of the Independent Firm that any required reports shall
be provided simultaneously to the Bank and the Department, and further, that
interim reports, draft reports, or work papers associated with the Transaction
Review will be preserved and made available to the Department upon request.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Throughout the Transaction Review, the Bank shall
ensure that all matters or transactions required to be reported that have not
been previously reported are reported in accordance with applicable rules and
regulations.</p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Training</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within sixty (60) days of the effective date of this Written Agreement,
the Bank shall submit a written plan, acceptable to the Department that is
designed to improve current training at the Bank with respect to BSA/AML
Requirements. Such plan shall further provide for the testing of the
effectiveness of such training. Individual employee training shall be tracked
in order to ensure that employees are qualified to perform their assigned
duties. The training shall extend to all aspects of regulatory and internal
policies and procedures related to BSA/AML Requirements, and shall include
measures designed to ensure that the training is sufficiently tailored to the
particular duties of the employees, and the activities conducted by the Bank.
The</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">plan shall provide for
periodic training updates to provide reasonable assurance that all appropriate
personnel are trained in the most current BSA/AML Requirements.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Approval, Implementation, and Progress Reports</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(a)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Bank shall submit written programs, plans, policies, procedures,
and an engagement letter that are acceptable to the Department within the
applicable time periods set forth in paragraphs 2 through 8 and 10 of this
Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
10 days of acceptance by the Department, the Bank shall adopt the approved
programs, plans, policies, procedures, and engagement letter.&#160; Upon adoption, the Bank shall implement the
approved programs, plans, policies, and procedures and thereafter fully comply
with them.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>During
the term of this Agreement, the accepted programs, plans, policies, procedures,
and engagement letter shall not be amended or rescinded without the prior written
approval of the Department.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On
the first business day of each month following the date of this Agreement, the
Bank shall submit to the Department written progress reports detailing the form
and manner of all actions taken to secure compliance with the provisions of
this Agreement and the results thereof.&#160;
Management responses to any audit reports covering BSA/AML Requirements
prepared by internal and external auditors shall be included with the progress
reports.&#160; The Department may, in writing,
discontinue the requirement for progress reports or modify the reporting
schedule.</p>


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<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Notices</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
communications regarding this Agreement shall be sent to:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Mr.
David S. Fredsall</p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deputy Superintendent</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York State Banking Department</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One State Street</font></p>

<p style="margin:0pt 0pt 12.0pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New
York, New York 10004</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>James
D. Stubbs</p>

<p style="margin:0pt 0pt .0001pt 72.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Compliance Officer</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American Express Bank Ltd.</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Three World Financial Center</font></p>

<p style="margin:0pt 0pt .0001pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">200 Vesey Street</font></p>

<p style="margin:0pt 0pt 12.0pt 108.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New
York, NY 10285</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Miscellaneous</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Agreement shall be binding on the Bank and its successors
and assigns.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
provision of this Agreement shall remain effective and enforceable until
stayed, modified, terminated or suspended in writing by the Department. If,
while this Agreement is in effect, the Bank or its parent companies are parties
to a definitive contract to sell the Bank, or otherwise transfer substantially
all of the Bank&#146;s assets and liabilities to an unaffiliated third party, the
Bank shall promptly notify the Department, which shall have discretion to stay,
modify, terminate or suspend any or all of the provisions of this Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
any provision of this Agreement, the Department may, in its sole discretion,
grant written extensions of time to the Bank to comply with any provision of
this Agreement.</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Agreement shall not bar, estop, or otherwise prevent the
Department or any other federal or state agency from taking any further or
other action affecting the Bank or any of its successors or assigns.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
Agreement is enforceable by the Department pursuant to Section 39 of the New
York Banking Law.</p>

<p style="margin:0pt 0pt 24.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of this 6th day of August, 2007.</font></p>

<table border="0" cellspacing="0" cellpadding="0" bgcolor="white" style="background:white;border-collapse:collapse;font-family:Times New Roman;">
 <tr style="page-break-inside:avoid;">
  <td width="287" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:215.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableLeft --><!-- SET mrlNoTableShading -->AMERICAN EXPRESS BANK LTD.</p>
  </td>
  <td width="67" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="319" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:239.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEW YORK STATE BANKING<br>
  DEPARTMENT</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="673" colspan="9" valign="top" style="padding:0pt .7pt 0pt 0pt;width:504.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="673" colspan="9" valign="top" style="padding:0pt .7pt 0pt 0pt;width:504.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="173" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:130.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Mr. WRichard Holmes</font></p>
  </td>
  <td width="87" valign="top" style="padding:0pt .7pt 0pt 0pt;width:65.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="67" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="173" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:130.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Mr. David S. Fredsall</font></p>
  </td>
  <td width="119" valign="top" style="padding:0pt .7pt 0pt 0pt;width:89.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="40" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="247" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:185.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. WRichard Holmes<br>
  Chairman and Chief Executive<br>
  Officer</font></p>
  </td>
  <td width="107" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:80.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="279" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:209.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. David S. Fredsall<br>
  Deputy Superintendent of Banks</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="27" style="border:none;"></td>
  <td width="13" style="border:none;"></td>
  <td width="160" style="border:none;"></td>
  <td width="87" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="27" style="border:none;"></td>
  <td width="13" style="border:none;"></td>
  <td width="160" style="border:none;"></td>
  <td width="119" style="border:none;"></td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>
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