​​OCC Issues Cease and Desist Order Against Bank of America for AML Compliance Deficiencies

The Office of Comptrollers of the Currency (OCC) announced a cease & desist order against Bank of America as it violated the Bank Secrecy Act (BSA) & sanction compliance program.

OCC found deficiencies in the Bank’s BSA compliance program, such as independent screening procedures, risk assessments, customer due diligence, weakness in internal controls, due diligence, employee training, transaction monitoring & models, internal audit, and the role of the BSA officer.

OCC ordered the bank to correct previously reported compliance deficiency related to Customer Due Diligence (CDD), file suspicious activity reports on time, and adhere to OCC regulations regarding sanctions compliance and BSA.

The bank should also hire an independent consultant who will conduct a review and assess the policies to ensure that all suspicious activities are accurately reported.

“We have been working closely with the Office of the Comptroller of the Currency over the past year to make improvements to our anti-money-laundering and sanctions programs. The work we’ve done so far positions us well to implement the requirements of the consent order.”

A Representative for Bank of America

Within 30 days of this order, the boards of directors have to appoint a compliance committee that should consist of 3 members. The majority of them should be directors, work independently, and don’t belong to banks. This committee will be responsible for overseeing the Bank, according to the terms of this order.

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The Bank has also agreed to implement an oversight program for its Bank Secrecy Act (BSA) and Sanctions Compliance Programs.

This action follows an agreement that outlines specific timeframes for the program development and implementation. This program will focus on:

• Strengthening Board and Senior Management Oversight
• Ensuring Safe and Sound Corporate Governance related to BSA

According to a press release, this initiative shows the Bank’s commitment to comply with all applicable regulations and to maintain a strong risk management framework.

OCC is a designated regulatory authority for national banks and has the legal authority to enforce & initiate cease & desist orders against the Bank pursuant to federal law (12 U.S.C. § 1818(b)).