Posts Tagged ‘banking’
Wells Fargo, Part II: The Data Stuff
Today we continue our look at the latest enforcement action against Wells Fargo, this time examining all the operational-level improvements that the bank needs to make in its financial crimes compliance program, per a settlement with banking regulators reached last week. As you might recall, Wells reached a settlement with the Office of the Comptroller…
Read MoreCiti Gets $136M Butt-Kick
The compliance drama-rama at Citigroup continues! Regulators just imposed another $136 million in new monetary penalties for the bank’s failure to complete compliance and risk management improvements required by a previous consent order from 2020, which had imposed a $400 million penalty of its own. So that’s more than half a billion dollars Citigroup is…
Read MoreFifth Third Bank Settles Bogus Accounts Mess
Fifth Third Bank has agreed to pay a $20 million fine and to overhaul its employee performance management practices, to settle a long-running lawsuit that workers were opening fake accounts without customer permission to meet sales goals and that they were saddling auto-loan borrowers with insurance the borrowers didn’t need. The Consumer Financial Protection Bureau,…
Read MoreScorching Report on FDIC’s Flawed Culture
The Federal Deposit Insurance Corp., one of the primary banking regulators in the United States, has released a blistering report about the agency’s own failure to uphold a culture of compliance, workplace respect, and accountability. Ethics and compliance professionals have so much to digest here we’ll need to explore it all over the course of…
Read MoreHow ‘Fairness’ Helps Compliance
Compliance officers struggle mightily to articulate the right balance between what’s ethical and what’s legal. So when one of the country’s top banking regulators gave a speech earlier this week titled “Fairness and effective compliance management,” it caught my eye. The regulator in question is Michael Hsu, acting head of the Office of the Comptroller…
Read MoreCity National, Part II: Customer Due Diligence
Today let’s return to that enforcement action against City National Bank, issued by federal banking regulators last week for City National’s systemic risk management shortcomings. We originally looked at the settlement order’s advice on risk assessments; next up is another common compliance challenge: customer due diligence. The recap here is that the Office of the…
Read MoreCity National’s Lessons on Risk Assessment
We have another meaty enforcement action from the banking world today, a $65 million civil penalty against City National Bank for systemic failures of corporate governance, risk management, and internal controls. The case includes a laundry list of compliance reforms the bank needs to implement, with plenty of lessons for the compliance profession as a…
Read MoreLessons on Effective Supervision
Radical Compliance rarely looks at corporate misconduct as obscure as a broker-dealer improperly trading in the market for U.S. Treasurys, but trust me on this: a FINRA enforcement action last week on exactly that issue does indeed offer the larger compliance community a few lessons worth learning. Let’s take a look. The broker-dealer in question…
Read MoreA Small Bank’s Big Lessons About Risk
Banking regulators have given us more lessons to ponder about effective third-party risk management and compliance programs, courtesy of a $30 million sanction against a bank in New York that had neither and ended up stuck in a pandemic-era $300 million fraud scheme. The bank in question is Metropolitan Commercial Bank (MCB), a bank in…
Read MoreDeutsche Bank Fined for Slow Compliance Fixes
The Federal Reserve has slapped Deutsche Bank with a $186 million penalty for failing to fix problems in its anti-money laundering compliance program that were originally flagged in the mid-2010s and related to Deutsche Bank’s sketchy relationship with Danske Bank, a former haven for Russian oligarchs. The Fed announced the enforcement action on Wednesday. In…
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