In a press release issued Thursday, the OCC announced it entered into a formal agreement with First FS & LA for the bank’s “failure to develop and implement an appropriate strategic plan; appropriately manage and control liquidity and interest rate risks; implement effective Bank Secrecy Act/anti-money laundering (BSA/AML) internal controls,” and failing to appoint a BSA officer with sufficient expertise.
In addition to addressing those risks, First FS & LA, a community bank based in Lorain, Ohio, was ordered by the OCC to hire a BSA officer “vested with sufficient independence, authority, and resources to fulfill the duties and responsibilities of the position and ensure compliance with the requirements of the BSA and its implementing regulations.”
Minnesota-based Heritage Bank—an employee-owned, digital-first bank with $590 million in total assets–agreed to a cease-and-desist order related to “capital adequacy, capital and strategic planning, credit review, ongoing monitoring of the credit portfolio, liquidity and liquidity management practices, and the allowance methodology.”
Heritage Bank was ordered implement a strategic plan to improve its “identification,…
