The Office of the Comptroller of the Currency (OCC) has announced that it has assessed a $65 million civil money penalty against the City National Bank of Los Angeles, California, related to systemic deficiencies in the bank’s risk management and internal controls.
The OCC found that the bank engaged in unsafe or unsound practices, including its failure to establish effective risk management and internal controls. This failure also resulted in noncompliance with 12 CFR Part 30, Appendix D, “OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches.”
The bank also violated the Bank Secrecy Act (BSA) and 12 CFR Part 9: Fiduciary Activities of National Banks.
The agency also issued a cease-and-desist order requiring the bank to take broad and comprehensive corrective actions to improve its strategic plan and operational risk management, including internal controls; compliance risk management, including BSA/anti-money laundering and fair lending; strategic risk management; and investment management practices.
The agency previously entered an agreement with the bank, requiring it to take actions to comply with the requirements of the Gramm-Leach-Bliley Act (GLBA), 12 USC 24a, and its implementing regulation, 12 CFR 5.39, for a national bank that has established or maintained a financial subsidiary.
The OCC penalty will be paid to the U.S. Treasury.
To read the full Civil Money Penalty order, click here.
