On January 19, the OCC released a list of recent enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such parties. The new enforcement actions include civil money penalty orders, cease and desist orders, prompt corrective action directives, and removal/prohibition orders. The list also includes recently terminated enforcement actions.
Civil Monetary Penalty. On December 27, the OCC issued a consent order (2017 Order) against a national bank’s South Dakota branch for violating a 2012 OCC issued consent order (2012 Order) related to deficiencies identified in the agency’s Bank Secrecy Act and anti-money laundering (BSA/AML) rules and regulations. According to the 2017 Order, the branch failed to timely comply with the 2012 Order, which required the branch to, among other things, (i) establish a Compliance Committee to oversee the branch’s adherence to the outlined provisions; (ii) submit, implement, and maintain an effective BSA/AML action plan; (iii) ensure the effective implementation of policies and procedures, which would fulfill BSA/AML and Office of Foreign Assets Control obligations; (iv) conduct a BSA/AML compliance program evaluation, risk assessment, and audit program; (v) develop appropriate customer due diligence policies and procedures, along with programs to ensure the timely identification and reporting of suspicious activity; (vi) develop practices governing the use of cash letter services and remote deposit capture; and (vii) conduct independent reviews of account and transaction activity. As a result, the 2017 Order requires the branch to pay a $70 million civil money penalty for failing to comply with the 2012 Order. The bank, while agreeing to the terms of the consent order, has not admitted or denied any wrongdoing.