United States

OCC announces operating plan for 2020

AML AND COMPLIANCE NEWS  | 

The Office of the Comptroller of the Currency’s (OCC) Committee on Bank Supervision released its bank supervision operating plan for fiscal year 2020 on Oct. 1, 2019. OCC staff uses the operational plan to guide them toward the areas to focus on in planning exams and in determining priorities. Understanding the focus of the plan can help banks prepare for exams in the upcoming year.

In addition to the baseline supervision to assign examination ratings, the supervisory strategies will focus on the following:

  • Cybersecurity and operational resiliency, with a focus on information technology risk management evaluation
  • Bank Secrecy Act/anti-money laundering (BSA/AML) compliance, with an emphasis on customer due diligence and beneficial ownership, evaluating whether BSA/AML technology solutions are sufficient, and assessing suspicious activity monitoring and reporting systems and processes
  • Commercial and retail underwriting practices and credit oversight, including portfolio risk exposure, portfolio risk management, independent loan review, concentration risk management, policy exception tracking, stress testing and collections management
  • Impact of changing interest rate outlooks on bank activities and risk exposures
  • Preparedness for the current expected credit losses (CECL) accounting standard
  • Preparation for the potential phaseout of the London Interbank Offering Rate (LIBOR) as a reference rate after 2021
  • Technological innovation and implementation, including cloud computing, artificial intelligence, digitalization in risk management processes, new products and services, and strategic plans

The OCC plans to provide periodic updates regarding supervisory priorities in the Semiannual Risk Perspective report.



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