# Federal Reserve Board Issues and Terminates Enforcement Actions

The Federal Reserve Board (FRB) issued a new enforcement action against Small Business Bank in Lenexa, Kansas, under a Prompt Corrective Action Directive dated June 29, 2026. Concurrently, the FRB terminated enforcement actions previously imposed on BNP Paribas entities (BNP Paribas S.A., BNP Paribas USA, Inc., BNP Paribas Securities Corp.) and Community Bankshares, Inc., effective June 25, 2026. Additionally, the enforcement action against Jiko Group, Inc. was officially terminated as of June 23, 2026, concluding regulatory proceedings initiated in July 2024.

- **Why this matters:** Procurement professionals and contractors working with or supporting financial institutions should be aware of the FRB's regulatory enforcement status, as it may affect vendor risk assessments and compliance requirements.
- The new enforcement action against Small Business Bank signals ongoing regulatory scrutiny that could impact contract eligibility or operational stability.
- Termination of enforcement actions for BNP Paribas entities and Jiko Group, Inc. may indicate improved compliance status, potentially reopening or stabilizing procurement opportunities.
- Organizations providing compliance, risk management, or financial services should evaluate how these enforcement developments influence their engagement strategies with affected institutions.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** July 24, 2026

### Government Entities
- Federal Reserve Board (FRB)

### Vendors
- Jiko Group, Inc. (subject of enforcement action)
- Small Business Bank (subject of enforcement action)
- BNP Paribas S.A. (subject of terminated enforcement action)
- BNP Paribas USA, Inc. (subject of terminated enforcement action)
- BNP Paribas Securities Corp. (subject of terminated enforcement action)

### Sources
- [Federal Reserve Board - Federal Reserve Board issues enforcement action with Small Business Bank and announces termination enforcement actions with BNP Paribas S.A., BNP Paribas USA, Inc., BNP Paribas Securities Corp., and Community Bankshares, Inc.](https://www.federalreserve.gov/newsevents/pressreleases/enforcement20260702a.htm) - Federal Reserve
- [Federal Reserve Board - Federal Reserve Board announces termination of enforcement action with Jiko Group, Inc.](https://www.federalreserve.gov/newsevents/pressreleases/enforcement20260625a.htm) - Federal Reserve