The Office of the Comptroller of the Currency (OCC) has ordered Wells Fargo Bank to develop and implement an effective enterprise-wide compliance risk management program.
After assessing the $500m civil money penalty against the Wells Fargo, it has ordered the bank to make restitution to customers harmed by its unsafe or unsound practices.
OCC said its action was closely coordinated with an action by the Bureau of Consumer Financial Protection and made possible through the collaborative approach taken by the bureau. Separately, the bureau assessed a $1bn penalty against the bank and credited the amount collected by the OCC toward the satisfaction of its fine.
It took these actions given the severity of the deficiencies and violations of law, the financial harm to consumers, and the bank’s failure to correct the deficiencies and violations in a timely manner.
The bureau found deficiencies in the bank’s enterprise-wide compliance risk management program that constituted reckless, unsafe, or unsound practices and resulted in violations of the unfair practices prong of Section 5 of the Federal Trade Commission (FTC) Act.
In addition, the agency found the bank violated the FTC Act and engaged in unsafe and unsound practices relating to improper placement and maintenance of collateral protection insurance policies on auto loan accounts and improper fees associated with interest rate lock extensions.
The $500m civil money penalty reflects a number of factors, including the bank’s failure to develop and implement an effective enterprise risk management program to detect and prevent the unsafe or unsound practices, and the scope and duration of the practices. A spokesperson for Wells Fargo did not respond to a request for comment.
Earlier this year, research from FinTech Global found that global RegTech continues to grow, with over $500m invested in Q1 2018. Investment in the quarter investment started strongly, with over the capital raised across 33 deals. Sift Science, a payment fraud detection platform, raised $53m in Series D funding led by Stripes Group, representing one of the largest deals of Q1 2018.
Xactly, a sales performance management and incentive compensation solution provider, recently bought Obero to bolster risk management, compliance offering.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
