United States

Revised OCC policy for CMPs


The Office of the Comptroller of the Currency (OCC) published a revised Policies and Procedures Manual (PPM) which revises PPM 5000-7, Civil Money Penalties. The revised PPM sets forth the OCC’s policies and procedures for the assessment of civil money penalties (CMP) against institution-affiliated parties (IAP), national banks, federal savings associations, federal branches and agencies, and bank service companies and service providers.

The updated PPM includes two matrices that itemize the factors considered, the severity of violations, and mitigating factors as well as provide guidance in determining if a CMP should be assessed and the appropriate amount of the CMP. The factors to be considered are taken from the Federal Financial Institutions Regulatory Agencies’ interagency policy regarding the assessment of CMPs. One matrix is used for IAPs, and the other is used for institutions.

The factors considered when determining whether or not CMPs will be assessed against institutions, and IAPs are similar and include:

  • Intent
  • Continuation after notification
  • Concealment
  • Financial gain or other benefit as a result of the violation
  • Loss or risk of loss to the bank
  • Impact or harm other than financial loss to the bank
  • Loss or harm to consumers or the public (consumer law or BSA violations)
  • Previous concern or administrative action for a similar violation
  • History of violations and tendency to engage in violations
  • Duration and frequency of violations before notification
  • Effectiveness of internal controls and compliance program
  • IAP responsibility for internal controls environment and its effectiveness

Mitigating factors considered are:

  • Good faith before notification
  • Full cooperation after notification
  • Restitution, if applicable