OCC Updates Policies Related to Violations of Laws, Regulations

The OCC today announced that it is updating several agency policies and processes related to violations of laws and regulations. The updates come as part of the agency’s international peer review and apply to examiners at OCC-supervised banks of all sizes and follow a similar process established for matters requiring attention.

The new policies provide examiners with guidance for how to communicate violations with board members and management. For example, examiners must label violations as “new” or “repeat” (if occurring for at least the second time in five years), as well as “self-identified” if brought to examiner attention by bank personnel.

After following up, examiners must identify previously communicated violations as “past due” (if the bank has taken no or insufficient action), “pending validation” (if more time is needed to validate the corrective action) or “closed” (provided the bank has corrected the violation and the agency has validated the correction).