City National Bank, a Los Angeles-based lender, will pay a $65 million fine for violating the Bank Secrecy Act and engaging in unsafe practices.
The Office of the Comptroller of the Currency (OCC) issued a cease-and-desist order requiring the bank to address systemic deficiencies.
The bank has agreed to pay the fine and take remedial actions without admitting or denying the OCC’s findings.
Violations and Consequences
City National Bank failed to follow the Bank Secrecy Act and comply with regulatory standards for large insured national banks.
The OCC found lapses in operational risk management, compliance risk management, strategic risk management, and investment management.
The bank must form a Compliance Committee to create an action plan and timeline to address these deficiencies.
Bank’s Response
City National Bank intends to resolve the issues identified by the OCC as soon as possible.
The bank will focus on strengthening its infrastructure and systems to reflect its size and business model.
The bank has agreed to pay the fine and take remedial actions without admitting or denying the OCC’s findings.
Additional Information
City National Bank manages over $93 billion in assets and has close ties with Hollywood.
The OCC’s actions are not investment advice, and investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency, or digital assets.
