Banking and Finance Law Daily OCC imposes $85M CMP against USAA Federal Savings Bank
News
Thursday, October 15, 2020

OCC imposes $85M CMP against USAA Federal Savings Bank

By Charles A. Menke, J.D.

The Federal savings association agreed to pay the $85 million civil money penalty to resolve claims brought by the OCC for unsafe or unsound practices resulting from the bank’s deficient compliance risk management program and IT risk governance program.

The Office of the Comptroller of the Currency has assessed an $85 million civil money penalty against USAA Federal Savings Bank, San Antonio, Texas, to resolve claims that the company failed to implement and maintain an effective compliance risk management program and an effective information technology risk governance program, the agency announced. The penalty was imposed pursuant to a consent order entered into between the OCC and USAA, which neither admitted nor denied the OCC’s findings.

The OCC found that USAA failed to implement and maintain an effective compliance risk management program and an effective IT risk governance program corresponding to its size, complexity, and risk profile. The bank’s deficiencies spanned all three lines of defense—first-line business units, independent risk management, and internal audit—in its compliance risk management program. The OCC alleged that, as a result of these deficiencies, USAA violated the Military Lending Act and the Servicemembers Civil Relief Act.

According to the OCC, USAA is in the process of remediating the violations pursuant to the requirements of a January 2019 consent order the bank entered into with the OCC. The settlement includes civil money penalties for violations of laws or regulations occurring prior to the date of the 2020 consent order to the extent that: (1) the past violations were caused by the bank’s deficient compliance risk management program or deficient IT risk governance program; and (2) the past violations were identified or are identified by the bank and remediated by Dec. 31, 2021.

Companies: USAA Federal Savings Bank

MainStory: TopStory BankingOperations EnforcementActions FinancialStability SCRA TexasNews

Back to Top

Interested in submitting an article?

Submit your information to us today!

Learn More

Banking and Finance Law Daily: Breaking legal news at your fingertips

Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on banking and finance legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.