SAN ANTONIO – The U.S. Office of the Comptroller of the Currency hit USAA with a cease-and-desist order on Dec. 18 regarding what the national bank regulator describes as “new or continuing violations” by USAA Federal Savings Bank.
The bank is part of the San Antonio-based insurance and financial services company USAA.
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The order alleges the bank has engaged in “unsafe or unsound practices, including those related to management, earnings, information technology, consumer compliance and internal audit; suspicious activity reporting violations; and noncompliance with guidelines establishing heightened standards applicable to the bank.”
The order replaces cease-and-desist orders issued against the bank in January 2019 and March 2022. It also outlines requirements to advance the bank’s risk and compliance management.
USAA spokesperson Roger Wildermuth said in a prepared statement that, “although our progress has not been consistent or swift enough,” the bank is well-positioned to complete the work required by the national regulator.
“With a stronger foundation in place to prevent and mitigate risk, we will continue to enhance our capabilities and processes to ensure we consistently serve our members with excellence,” Wildermuth said.
The order also restricts USAA’s ability to expand its membership criteria and add new products and services. USAA provides banking and insurance services to military members and veterans.
“Moving forward, our path is clear,” Wildermuth said. “Managing risk effectively and operating in a compliant fashion are the foundation of serving our members and delivering on our mission. We continue to identify and resolve issues while strengthening the rigor of our programs and processes.”
He added that USAA is investing in additional systems and training.
“Our focus is on getting this right for USAA and our members,” he said.
USAA CEO Wayne Peacock announced earlier this year his plan to retire in 2025.
Read more of this story on San Antonio Business Journal’s website.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.