Billion-Dollar Bank Fined $65 Million and Issued Cease-and-Desist Order for Violations
A prominent Los Angeles-based lender, dubbed the ‘bank to the stars,’ has been slapped with a $65 million fine by the Office of the Comptroller of the Currency (OCC) for various violations, including failure to comply with the Bank Secrecy Act. The OCC determined that City National Bank engaged in “unsafe or unsound practices,” leading to lapses in operational risk management, compliance risk management, strategic risk management, and investment management. Additionally, the bank was found to have violated regulatory standards designed to safeguard large insured national banks.
Remedial Actions and Compliance Committee
In addition to the hefty civil penalty, City National Bank has been issued a cease-and-desist order by the OCC. As part of this order, the bank is required to establish a Compliance Committee. The committee’s primary responsibility will be to develop an action plan to address the lender’s systemic deficiencies, provide a realistic timeline for completion, and assign accountability for implementing the OCC’s remedial measures.
Commitment to Resolving Issues
City National Bank has expressed its commitment to promptly resolving the concerns raised by the OCC. In a statement, the bank stated that it will focus on strengthening its infrastructure and systems in line with its size and business model. It has agreed to pay the fine and implement remedial actions without admitting or denying the OCC’s findings.
About City National Bank
City National Bank manages over $93 billion in assets and is well-known for its close ties with Hollywood.
Hot Take: Billion-Dollar Bank Faces Severe Consequences for Regulatory Violations
A prominent Los Angeles-based lender, City National Bank, has been hit with a $65 million fine and a cease-and-desist order by the Office of the Comptroller of the Currency (OCC). The bank violated the Bank Secrecy Act and failed to comply with regulatory standards, resulting in lapses in various areas. To address these issues, City National Bank will establish a Compliance Committee tasked with developing an action plan and timeline for remedial measures. The bank has pledged its commitment to resolving the concerns raised by the OCC. This enforcement action highlights the severe consequences faced by financial institutions for regulatory violations.
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