On February 27, 2017, the OCC assessed a $1 million civil money penalty against a bank in relation to deficiencies in the bank’s Bank Secrecy Act (BSA) compliance practices. The OCC found that the deficiencies resulted in violations of two prior consent orders entered into by the bank in 2010 and 2014, as well as a continued violation of 12 C.F.R. § 21.21, procedures for monitoring BSA compliance.
Specifically, the prior consent orders required the bank to remedy a wide range of deficiencies in all four pillars of its BSA program, including its system of internal controls, independent testing, designation of a BSA officer for coordinating and monitoring BSA/AML, and providing BSA training to appropriate personnel. The OCC found, during its examination of the bank, that the bank had failed to correct these deficiencies in violation of the prior consent orders, and that the bank, as a result, also remained in violation of the procedures for monitoring BSA compliance found in 12 C.F.R. § 21.21. According to the OCC, the $1 million penalty reflects several factors, including the scope and duration of the bank’s failure to comply with the prior consent orders, as well as the violation of 12 C.F.R. § 21.21 through and including May 25, 2016. The bank has paid the $1 million civil money penalty to the U.S. Treasury. The OCC is also coordinating its action with the Financial Crimes Enforcement Network (FinCEN), which issued a separate order against the bank.
A copy of the consent order can be viewed here: https://www.occ.gov/news-issuances/news-releases/2017/nr-occ-2017-23.html.