The Office of the Comptroller of the Currency, a national banking regulator, has issued another cease-and-desist order against USAA Federal Savings Bank.
A national banking regulator has once again dropped the hammer on USAA Federal Savings Bank . The Office of the Comptroller of the Currency said Wednesday in a cease-and-desist order that “new or continuing violations of law, rule, or regulation” exist at the embattled bank.
The OCC said it’s taking action against the bank for engaging in “unsafe or unsound practices, including those relating to management, earnings, information technology, consumer compliance, and internal audit.” It also said the bank was not in compliance with heightened standards requirements for large banks. That's not all. The OCC said the bank remains in “noncompliance” with similar orders issued in 2019 and 2022. The bank is required to take “comprehensive corrective actions to enhance risk governance, compliance risk management, information technology management fraud risk management,” among other items. MORE ON THE BANK: USAA Federal Savings Bank has quietly changed its headquarters from San Antonio to Phoenix The new order imposes limitations on the bank’s ability to add certain new products and services, as well as on expanding its membership criteria. USAA spokesman Roger Wildermuth said the order outlines requirements to advance the bank’s risk and compliance management “to the level we and our regulators expect.” “Although our progress has not been consistent or swift enough, the bank is well-positioned to complete this work,” he said. “With a stronger foundation in place to prevent and mitigate risk, we will continue to enhance our capabilities and processes to ensure we consistently serve our members with excellence.” Wildermuth said that USAA’s path moving forward is clear. “Managing risk effectively and operating in a compliant fashion are the foundation of serving our members and delivering on our mission,” he said.'We continue to identify and resolve issues while strengthening the rigor of our programs and processes. We also are investing in additional systems and training while reinforcing the behaviors of a strong risk management culture. Our focus is on getting this right for USAA and our members. The latest order from the OCC terminates and supersedes other actions it has taken against USAA Bank in recent years. In 2019, the OCC uncovered evidence of a combined 600 violations of the Servicemembers Civil Relief Act and the Military Lending Act. An $85 million civil penalty was assessed in 2020 for failing to implement and maintain an effective compliance risk management program. In 2022, the Financial Crimes Enforcement Network slammed the bank with $140 million in fines for deficiencies in its Bank Secrecy Act/Anti-Money Laundering compliance program. The OCC also assessed a $60 million civil penalty, but FinCEN agreed to credit that amount so the bank only had to pay $140 million. Wildermuth said the OCC’s latest order confirms the progress the bank has made on its BSA/AML program. Within 90 days, the bank is required to submit to an examiner an 'acceptable written action plan detailing the remedial actions necessary to achieve compliance with part of the order.' Wednesday’s action comes about eight months after USAA Bank quietly shifted its headquarters to Phoenix from San Antonio, where it had been based for about four decades. Wildermuth described it as a “paper move” to “simplify our operations.” The bank had about 14,200 employees as of Sept. 30. It earned $65 million in the first nine months of the year and had about $110.3 billion in total assets.
Office Of The Comptroller Of The Currency Federal Savings Bank Financial Crimes Enforcement Network BSA Roger Wildermuth San Antonio Phoenix Anti-Money Laundering Bank Secrecy Act Military Lending Act Servicemembers Civil Relief Act
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Online Bank Users Horrified as Their Savings Accounts Vanish Into Thin AirScience and Technology News and Videos
Read more »
Sen. Tom Cotton introduces bill to ban federal use of the term ‘West Bank’Sen. Tom Cotton, R-Ark., reacts to the Biden-Harris administration's foreign policy in the Middle East on 'Life, Liberty & Levin.'
Read more »
CFPB sues Comerica Bank for failing to administer federal benefits programThe Consumer Financial Protection Bureau accused the bank of intentionally terminating calls and mishandling fraud complaints.
Read more »
GOP senator introduces bill banning use of 'West Bank' in federal government materialsSen. Tom Cotton, R-Ark., introduced a bill Thursday that, if passed, would ban the use of the term 'West Bank' in federal government materials.
Read more »
GOP senator introduces bill banning use of 'West Bank' in federal government materialsSen. Tom Cotton, R-Ark., introduced a bill Thursday that, if passed, would ban the use of the term 'West Bank' in federal government materials.
Read more »
GOP senator introduces bill banning use of 'West Bank' in federal government materialsSen. Tom Cotton, R-Ark., introduced a bill Thursday that, if passed, would ban the use of the term 'West Bank' in federal government materials.
Read more »