Nevada Administrative Code Chapter 668 - Banks: Prohibited Practices and Penalties
Here’s a detailed overview of Nevada Administrative Code Chapter 668 – Banks: Prohibited Practices and Penalties:
📌 1. Scope & Purpose
NAC 668 sets rules governing certain prohibited practices by banks and penalties imposed for violations, primarily administered by the Nevada Commissioner of Financial Institutions (leg.state.nv.us).
🚨 2. Complaints – § 668.010
Response requirement: If a licensed bank (or its rep) doesn’t reply in writing within 20 business days to a Commissioner’s notice of a complaint, they are deemed to have admitted the allegations (law.cornell.edu).
Confidentiality: Complaints, related documents, investigation reports, and information remain confidential, unless law provides otherwise .
💰 3. Penalties & Prohibited Conduct
Although the full NAC text wasn’t readily accessible, older versions and the corresponding Nevada Revised Statutes (NRS) Chapter 668 include key provisions that likely align with NAC penalties:
False, deceptive statements or records, including financial misstatements, false oaths, or suppressed evidence—punishable by criminal fines, incarceration, or administrative removal (law.justia.com).
Embezzlement or misapplication of customer or bank funds—subject to severe criminal and administrative sanctions .
Unauthorized disclosures of confidential banking information—addressed under NAC/NRS provisions with penalties .
Advertising limitations: Banks must comply with advertising restrictions (e.g., avoid false statements or misleading stock announcements) in NAC/NRS rules (law.justia.com).
Administrative fines are authorized for violations under § 668.112 (as per older NRS) (law.justia.com).
📘 4. Relationship to NRS
NAC 668 provides regulations and administrative procedures supporting statutory mandates in NRS 668 (e.g., §§ 668.015, .045, .055, .065, .075, .085, etc.) . These statutes address wide-ranging misconduct: embezzlement, false statements, breach of confidentiality, unauthorized transactions, advertising, and reporting fraud.
🏛️ 5. Enforcement & Administrative Action
Commissioner oversight: Banks must respond to investigations and inquiries.
Failure to respond or illegal conduct can lead to:
Deemed admission of complaint allegations.
Civil or criminal penalties, including fines, license revocation, and possibly jail time.
Confidential handling of investigations by default, unless statutes require disclosure.
✅ Summary Table
Area
Key Points
Complaint Handling
20-day response deadline; failure = deemed admission; confidentiality protected
Misconduct & Penalties
Embezzlement, misstatements, false oaths, confidential breaches, fraudulent advertising
Administrative Tools
Fines, license suspension/revocation, criminal charges
Statutory Link
Tied directly to NRS 668 statutes detailing misbehavior categories
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