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OCC Exports ‘Stress Test’ Model to Midsize Banks
By Colby Adams and Brian Monroe
printThe U.S. regulator of national banks has begun stress testing midsize financial institutions for adequate safety and soundness controls, including anti-money laundering and sanctions checks, say financial lobbyists and compliance officers. The tests stem from a decision last year by officials at the U.S. Office of the Comptroller of the Currency to have its Risk Analysis Division (RAD) quiz the nation's largest banks on Bank Secrecy Act (BSA) controls as part of their model risk management reviews. RAD has since begun evaluating the anti-money laundering (AML) programs of smaller financial institutions. "The general risk examiners are going into midsize banks...
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