The Office of the Comptroller of the Currency (OCC) is an independent bureau within the U.S. Department of the Treasury, responsible for chartering, regulating, and supervising all national banks and federal savings associations, as well as federal branches and agencies of foreign banks operating in the U.S. It enforces anti-money laundering (AML) compliance through examinations, regulations, and enforcement actions.
Definition And Charter Authority Of The OCC
The OCC’s authority stems from the National Currency Act and subsequent banking statutes. It grants federal charters to national banks, supervises them for safety and soundness, and ensures compliance with a broad range of federal banking laws, including AML/BSA requirements.
Under the Bank Secrecy Act (BSA, 31 U.S.C. § 5311 et seq.), the OCC issues implementing regulations (12 CFR) requiring national banks to maintain AML programs, keep records, file reports, and implement controls to detect and deter money laundering and terrorist financing.
Why The OCC Matters In AML Compliance
As the primary regulator for national banks (and certain federal savings associations), the OCC plays a central role in ensuring those institutions uphold robust AML programs. Its mandates and supervision directly affect how these banks build processes, allocate resources, and structure internal controls for financial crime compliance.
Some of its key roles include:
Examination and supervision: The OCC conducts regular on-site and off-site examinations to assess compliance with BSA/AML requirements.
Regulatory rulemaking and guidance: It issues interpretive guidance, bulletins, and clarifications to help institutions understand obligations under BSA/AML.
Enforcement actions: When deficiencies are found, the OCC can impose orders, penalties, or require corrective action plans.
Coordination and interagency work: The OCC works alongside FinCEN, OFAC, the Federal Reserve, the FDIC, and others to promote consistent AML regimes across regulated banks.
Risk-based supervision: It tailors its examination intensity by institution size, risk profile, and systemic importance.
Because national banks represent a substantial portion of U.S. banking assets, OCC oversight has significant leverage in shaping the AML landscape.
OCC’s BSA/AML Examination Program
Below are core components of how OCC enforces AML compliance via examinations and oversight.
Examination Framework & FFIEC Manual Integration
The OCC uses the FFIEC Bank Secrecy Act/Anti-Money Laundering Examination Manual as the foundation for BSA/AML reviews during supervisory cycles. During these exams, OCC reviewers assess risk assessments, controls, transaction monitoring, reporting, internal audit, and governance.
Scope And Frequency Of Examinations
Frequency and depth of OCC examinations vary depending on bank size, complexity, and risk. Large or complex banks face more frequent, deeper BSA/AML scrutiny.
Enforcement And Corrective Actions
If a bank’s AML program is found deficient, the OCC can issue cease-and-desist orders, civil money penalties, require remediation plans, or downgrade supervisory ratings. For example, the OCC recently directed a major bank to overhaul its AML program after finding serious shortcomings.
Monitoring Of Emerging Risks
The OCC actively monitors evolving AML and financial crime risks, such as digital assets, crypto, transaction structuring, cross-border flows, and adjusts its guidance and supervision accordingly.
Limitations & Interaction With Other Regulators
Although the OCC has strong authority over national banks, there are boundaries and interactions to consider:
Only national banks and certain federal savings associations: The OCC does not directly regulate state-chartered banks (unless they’ve opted into federal supervision); those are overseen by state regulators in coordination with FDIC or the Federal Reserve.
Shared regulatory framework: Many AML rules originate from statutes administered by the Department of the Treasury / FinCEN, not the OCC itself; the OCC enforces compliance through supervision.
Overlap in supervision: Banks may have multiple regulators depending on their structure; the OCC coordinates to avoid overlapping or conflicting examinations.
Limited to exam authority: The OCC does not directly file SARs or conduct customer onboarding in institutions; it ensures banks do so.
The Future Of The OCC’s AML Enforcement Role
Looking ahead, several developments may shape how the OCC enforces AML:
Revised supervisory approaches and policies: The OCC has recently reviewed how its BSA/AML supervision should avoid contributing to “unlawful debanking” and may revise supervisory handbooks accordingly.
Greater scrutiny of large banks: The OCC plans to intensify AML focus on very large institutions, applying more rigorous standards and enforcement.
Incorporation of technology and analytics: Use of machine learning, AI, real-time transaction monitoring, and advanced data analytics is likely to factor more heavily into OCC expectations of banks’ AML systems.
Crypto, digital asset regulation: As digital assets become more prominent, the OCC may extend or clarify how AML obligations apply to new product lines, including fintech and blockchain-based services.
Modernized AML guidance: Expect updates to examination manuals and interpretation of statutes to address emerging laundering techniques, cross-border flows, and evolving pressure from regulators and the industry.
Strengthen Your OCC-Aligned AML Compliance Framework
Given the OCC’s enforcement power over national banks, institutions must ensure their AML programs meet the highest supervisory standards. By investing in robust governance, continuous control testing, advanced monitoring systems, and rapid remediation, banks can reduce the risk of enforcement and regulatory drag.
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