The Office of the Comptroller of the Currency made public on 17 October 2024 a Formal Agreement with Axiom Bank, N.A., headquartered in Maitland, Florida, requiring the bank to address unsafe or unsound practices in its Bank Secrecy Act and anti-money-laundering compliance programme. The action, assigned Docket No. AA-SO-2024-83, was included in the OCC's October 2024 enforcement release.
The agreement identifies violations of 12 CFR 21.21(d)(1) and 12 CFR 21.21(d)(3), the federal regulations that govern BSA/AML internal controls and the designation and empowerment of a qualified BSA compliance officer respectively.
DEFICIENCIES IN INTERNAL CONTROLS AND BSA OFFICER REQUIREMENTS
The internal controls requirement under 12 CFR 21.21(d)(1) obliges banks to develop and maintain written policies, procedures, and systems adequate to detect and report suspicious activity, identify customers, and retain appropriate transaction records.
The BSA officer requirement under 12 CFR 21.21(d)(3) mandates that each bank appoint a suitably qualified individual to coordinate and monitor the BSA/AML compliance programme on a day-to-day basis.
Under the Formal Agreement, Axiom Bank is required to develop and implement a remediation plan addressing each identified deficiency to the satisfaction of OCC supervisors. The bank's board of directors bears ultimate responsibility for ensuring that corrective actions are implemented promptly and that progress is reported to the regulator at agreed intervals. Failure to comply with the terms of a Formal Agreement can expose a bank to further, more severe enforcement action.
PART OF A BROADER OCTOBER 2024 ENFORCEMENT RELEASE
The OCC's October 2024 enforcement release also included a cease and desist order and $450 million civil money penalty against TD Bank, along with formal agreements with three other banks.
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