The Office of the Comptroller of the Currency (OCC) has issued a cease-and-desist order to Bank of America, requiring the bank to revamp its anti-money-laundering protocols and undergo a review of its past actions. The OCC found significant compliance violations, including inadequate internal controls, poor governance, and deficient independent testing.
The agency cited failures in transaction monitoring, suspicious activity reporting, and customer due diligence processes as contributing factors. Bank of America had previously acknowledged these issues but claimed any material financial impact would be limited. However, the OCC’s order does not include a monetary penalty for the bank.
The agreement allows Bank of America to hire a third-party consultant to evaluate its BSA and sanctions compliance. The bank must also correct its customer due diligence processes and provide proper oversight, training, and screening for sanctions compliance. Despite this, analysts note that the bank may face increased expenses and potential growth restrictions similar to those faced by Wells Fargo.
Bank of America’s spokesperson said the bank has been working closely with the OCC to improve its anti-money-laundering and sanctions programs. The agreement positions the bank well to implement the requirements of the consent order.
Source: https://www.americanbanker.com/news/occ-issues-bank-of-america-cease-and-desist-for-aml-lapses