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The OCC has released Bulletin 2008-16 which reminds banks and their technology service providers that application security is an important component of their information security program.

FinCEN and the OCC have announced the assessment of concurrent civil money penalties, each $15 million, against the New York Branch of United Bank for Africa, PLC (“the Branch”) for violations of the Bank Secrecy Act (BSA). This enforcement action stems from an earlier Cease and Desist Order issued in January 2007.  During a target examination conducted in November 2007, examiners determined that the Branch had failed to comply with the previous Order's terms and that significant BSA program deficiencies remained pervasive and systemic, including internal control and audit deficiencies, as well as the Branch's continued failure to identify and report suspicious activities.

The OCC has entered into a settlement agreement with Wachovia Bank, National Association that directs the bank to make restitution to consumers harmed by its relationships with several telemarketers and third party payment processors.

According to the OCC’s press release, the bank has agreed to make restitution to all consumers harmed who have not been previously reimbursed and who file claims under the processes set out in the settlement. The estimated maximum amount of potential claims is $125 million; actual claims may result in restitution in a lesser amount. In addition to the restitution payments, the bank will also be required to contribute approximately $8.9 million to consumer education programs directed at the elderly, and to pay a $10 million civil money penalty to the U.S. Treasury. In reaching the settlement,  the OCC concluded that the bank engaged in unsafe or unsound practices during the course of its relationships with the payment processors and telemarketers, and unfair practices within the meaning of the Federal Trade Commission Act.

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Most Recent Financial Crime Enforcement Question

We live in a rural community where many of our customers have PO Boxes. Sometimes physical addresses are not present. Are we required to collect a physical address for CIP purposes?