OCC Seeks to Reform Liquidity Risk & AML Compliance
- The office of the Comptroller of the Currency (OCC) has laid out its regulatory priorities for 2025, centering on liquidity risk management, Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance,...
- Gould, speaking at a meeting of the Financial Stability Oversight Council (FSOC), detailed the OCC's plans.
- The OCC highlighted several key actions taken in 2024 that will inform its 2025 agenda:
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OCC Outlines 2025 Regulatory Agenda: Focus on Risk, Compliance & Community Banks
Table of Contents
The office of the Comptroller of the Currency (OCC) has laid out its regulatory priorities for 2025, centering on liquidity risk management, Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance, and adjustments to regulations impacting community banks. These reforms build upon efforts initiated in 2024, aiming to address what the OCC views as overly restrictive policies implemented after the 2008 financial crisis.
Key Areas of Focus
Comptroller of the Currency Jonathan V. Gould, speaking at a meeting of the Financial Stability Oversight Council (FSOC), detailed the OCC’s plans. He emphasized that the planned reforms are a continuation of work already underway.
- Liquidity Risk Management: Reforms are planned to strengthen how banks manage their liquidity.
- BSA/AML Compliance: Increased focus on ensuring banks effectively combat money laundering and financial crime.
- Community Bank regulation: Efforts to tailor regulations to the size and complexity of community banks, reducing burdens and fostering local lending.
2024 Accomplishments – A Foundation for 2025
The OCC highlighted several key actions taken in 2024 that will inform its 2025 agenda:
- Recission of 2013 Leverage Lending Guidance: the OCC revoked guidance deemed legally questionable and overly restrictive on lending.
- enhanced Supplementary Leverage Ratio (eSLR) Changes: Adjustments were made to the eSLR to bolster market resilience and increase lending capacity.
- Proposed Community Bank Leverage Ratio Revision: A proposed rule aims to lower the leverage ratio for community banks,enabling them to better serve local economies.
- Tailored Examination Activities: Reforms were implemented to streamline examination processes for community banks.
Impact on Community Banks
A key theme of the OCC’s agenda is reducing the regulatory