Ocean Bank said Friday it will be hit with a federal regulatory order to beef up its anti-money laundering compliance program and its real estate credit policies.

The Miami bank becomes the 18th South Florida financial institution to face federal enforcement over failure to fully monitor against money laundering or other suspicious activities.

The bank said a cease-and-desist order would be issued in the near future after the Federal Deposit Insurance Corp. and the Florida Office of Financial Regulation raised concerns.

Under the regulatory action, Ocean Bank will agree to come under increased government scrutiny but will not admit or deny fault. Nor will the bank pay a fine.

In a statement, Terry J. Curry, Ocean Bank executive vice president and chief credit officer, said the bank has been working to resolve the issues raised by the regulators and that they have recognized its efforts.

Among other measures, the bank is adding new systems and has hired four more Bank Secrecy Act compliance specialists.

Besides anti-money laundering compliance, the order will also require strengthening of the bank's credit policies and procedures.

Curry said the requirements were in line with the size, growth and risk profile of the bank.

TRACKING ACCOUNTS

Among the areas the bank must improve are procedures for opening and monitoring customer accounts, especially high-risk accounts; procedures for reporting suspicious activity; and board of directors' oversight and management supervision of Bank Secrecy Act compliance efforts, the bank said.

Ocean Bank must also better monitor its loan portfolio and diversify risk. The bank is to establish limits on total credit going to one borrower and more outside valuations for real estate loans over $10 million.

MONITOR LOANS

The FDIC also will require the bank to set up a plan to reduce and monitor condo conversion and land development loans.

Curry said the regulatory action will not affect customers or the bank itself, which has $5.9 billion in assets.

The bank also said it had not had any net charge-offs in real estate lending in the past two years, nor was it required to increase its loan-loss provisions or reserves, a sign of financial health.

Chartered in 1982, Ocean Bank is one of the largest independent commercial banks headquartered in Florida.