OCC has updated its standards for mandatory enforcement actions. The big four are BSA, ECOA, Fair Housing and Flood. The biggest issue in BSA is program failures - failure to have an adequate program and failure to make the program work. BSA violations don't stop at the examination - they are reported to FinCEN. That opens up more opportunities for civil money penalties. Just ask AmSouth!
Discrimination in lending can get identified under ECOA, the Fair Housing Act or both. Here again, violations are referred to another agency. Pattern or practice ECOA violations are referred to DOJ while Fair Housing violations are referred to HUD.
Civil money penalties for a pattern or practice of violations of flood hazard are mandatory. In fact, flood penalties are piling up. Don't overlook these areas in the coming year, even if the FACT Act keeps you more than busy.
Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 13, 11/04
First published on 11/01/2004