OCC Imposes $70 Million Fine Against National Bank for Failing to Fix Anti-Money-Laundering Issues

On December 27, 2017, the Office of the Comptroller of Currency (OCC) entered a consent order with a national bank stemming from allegations that the bank violated a 2012 consent order related to Bank Secrecy Act/Anti-Money Laundering (BSA/AML) deficiencies.  These laws form the U.S. regulatory framework for combating money laundering and other forms of illicit financing.

In the 2012 consent order, the OCC cited the bank for, among other things, (i) deficiencies in the bank’s BSA/AML compliance program, (ii) failing to file suspicious activity reports, and (iii) weaknesses in controls related to foreign correspondent banking.  The 2012 consent order outlined a checklist of steps that the bank was required to implement to remedy the deficiencies identified by the OCC.  For example, the 2012 consent order mandated that the bank (i) establish clear lines of responsibility for BSA/AML compliance, (ii) adopt new customer due diligence programs and suspicious activity reporting policies, (iii) hire an independent consultant to review past activity for reporting failures, and (iv) implement new policies governing the use of cash letter services and remote deposit capture by all clients of the bank.

Although the 2017 consent order does not identify any specific violations, the order indicates that the OCC found that the bank had not achieved compliance with the 2012 consent order by failing to fix the previously cited BSA/AML compliance issues.  The 2017 consent order requires the bank to pay a $70 million civil money penalty.  The bank consented to the OCC’s finding without admitting or denying wrongdoing.

The 2017 consent order is available here: https://www.occ.gov/static/enforcement-actions/ea2017-104.pdf.

The 2012 consent order is available here: https://www.occ.gov/static/enforcement-actions/ea2012-052.pdf.