On January 31, 2024, the OCC assessed a $65 million civil money penalty against City National Bank related to systemic deficiencies in the Bank’s risk management and internal controls. The agency also issued a cease-and-desist order requiring the bank to take broad and comprehensive corrective actions to improve its strategic plan, operational risk management, compliance risk management, strategic risk management, and investment management practices.
The OCC found that the bank engaged in unsafe or unsound practices with respect to its operational risk management, including internal controls; compliance risk management, including BSA/AML, and fair lending; strategic risk management; and investment management practices. 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.
Read the OCC’s press release here.
The consent order can be found here.