- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-04-19T17:49:00
The Treasury Department’s Office of the Comptroller of the Currency (OCC) cited three banks for unsafe and unsound business practices that mirror issues similar to what spurred last year’s banking crisis, including risks posed to bank investments by higher interest rates and liquidity concerns in the event of a bank’s failure.
In a press release issued Thursday, the OCC announced it entered into a formal agreement with First FS & LA for the bank’s “failure to develop and implement an appropriate strategic plan, appropriately manage and control liquidity and interest rate risks, implement effective Bank Secrecy Act/anti-money laundering (BSA/AML) internal controls,” and failing to appoint a BSA officer with sufficient expertise.
In addition to addressing those risks, First FS & LA, a community bank based in Ohio, was ordered by the OCC to hire a BSA officer “vested with sufficient independence, authority, and resources to fulfill the duties and responsibilities of the position and ensure compliance with the requirements of the BSA and its implementing regulations.”
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Among the enforcement actions issued by the Treasury Department’s Office of the Comptroller of the Currency in August, two banks were separately penalized for deficiencies in anti-money laundering and Bank Secrecy Act compliance and board oversight.
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