The OCC issued a consent order against Community Federal Savings Bank for BSA/AML deficiencies tied to its rapid expansion into payment processing. The bank’s automated alert system used filtering thresholds not tuned to its risk profile, its customer due diligence program failed to understand certain customers’ businesses, and its internal auditor failed to identify program weaknesses.
The OCC is still focused on small institutions that grow fast without proportionate compliance investment.
OCC May enforcement actions: https://www.occ.gov/news-issuances/news-releases/2026/nr-occ-2026-40.html