OCC Issues Cease-and-Desist Order to Bank of America Over AML Deficiencies

The U.S. Office of the Comptroller of the Currency (OCC) has issued a cease-and-desist order to Bank of America, citing significant deficiencies in the bank's anti-money laundering (AML) measures. The regulator pointed to the bank's failures in filing timely suspicious activity reports and conducting adequate customer due diligence as primary concerns.

The OCC further highlighted what it described as "unsafe or unsound practices" related to Bank of America’s compliance with the Bank Secrecy Act (BSA) and sanctions regulations. These shortcomings, the agency noted, represent ongoing compliance issues, as the bank has failed to address a previously identified BSA compliance problem.

As part of the enforcement action, the OCC is requiring Bank of America to submit a comprehensive remediation plan within 90 days to bring its AML and sanctions compliance programs up to regulatory standards. While the order stops short of imposing monetary penalties, it outlines specific corrective steps that the bank must undertake to ensure compliance moving forward.

In a statement, Bank of America acknowledged the OCC’s concerns and emphasized its ongoing efforts to address them. "We have been working closely with regulators over the past year to improve our anti-money laundering and sanctions programs," the bank said. It also expressed confidence in its ability to comply with the order, stating that it is "well-positioned to meet the order’s requirements."

This development underscores the importance of robust compliance programs for financial institutions, particularly in an era of heightened regulatory scrutiny.

By fLEXI tEAM