You Need A Written Compliance Program

One of the most common criticisms from regulators in recent compliance examinations has been a bank's lack of a written Compliance Program. One of the most common requirements in recent regulatory enforcement actions has been the development and submission of such a written program. The past seven year period of turmoil in banking brought about the advent of a greatly increased regulatory scrutiny for banks. During this time, the FDIC, the OCC, the Federal Reserve and the CFPB have each changed their view of how financial institutions should approach the subject of regulatory compliance, especially for consumer protection laws and regulations.

The risks to banks that the regulators are concerned about have not changed. Regulators still believe that poor compliance practices increase a bank's reputational risk, legal risk, and compliance risk. What has changed is the regulators' focus on what to do about these risks.