OCC issues $85m penalty to USAA Federal Savings Bank
The Office of the Comptroller of the Currency (OCC) has levelled a $85 million penalty on USAA Federal Savings Bank for risk management inadequacies.
This is the second reprimand for the San Antonio bank in two years. The latest fine actually stems from a censure issued by the OCC in January 2019.
The OCC says USAA has failed to “implement and maintain an effective compliance risk management program and an effective information technology risk governance program.”
It adds that it violated the Military Lending Act and the Servicemembers Civil Relief Act.
USAA is in the process of remediating these violations. A spokesperson told FastInform that it is working “diligently” to address issues and hire the “right expertise”.
In a public statement, USAA CEO Wayne Peacock says the bank has “fallen short” of its “high standards”.
“As we grew quickly over the last decade, we never wavered from our commitment to serve members.
“However, we did not sufficiently invest in the capabilities and expertise necessary to meet regulatory requirements and evolving business needs.”
USAA Bank is a subsidiary of San Antonio insurance and financial services company USAA. It has around $100 billion in assets and ranks among the largest banks in the USA.
Its 13 million members are comprised of current and former members of the US military and their close families.
Earlier this month the OCC lowered the bank’s evaluation under the Community Reinvestment Act after finding more than 600 credit violations.