OCC Slaps BofA With Cease-And-Desist Order For BSA Shortcomings

 WASHINGTON—The Office of the Comptroller of the Currency has taken action against BofA, issuing a cease-and-desist order due to significant shortcomings in the bank’s compliance with the Bank Secrecy Act (BSA) and its sanctions programs, the Wall Street Pit reported.

Among the critical issues highlighted are the bank’s failure to file suspicious activity reports in a timely manner, alongside a notable lapse in addressing a previously flagged deficiency in its Customer Due Diligence processes. The OCC’s order further criticizes the bank’s internal control mechanisms, governance structures, independent testing procedures, and the training regimen for its BSA compliance personnel, Wall Street Pit said.

In response to these findings, the OCC has mandated that Bank of America undertake comprehensive corrective measures. This includes a thorough enhancement of its BSA and AML compliance frameworks, Wall Street Pit said.

“A key part of the remedial action involves hiring an independent consultant. This external expert will not only assess the current state of the bank’s compliance programs but also conduct lookback reviews. These reviews are essential to verify that all past suspicious activities have been properly documented and reported, ensuring no malpractices have gone unnoticed or unreported,” Wall Street Pit said.

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