New OCC Policy Opens Door to Big Fines for Bad Fintech Partners

Smaller banks risk bigger fines under the Office of the Comptroller of the Currency’s updated civil penalty scheme if a lot of consumers get hurt by violations committed by their fintech or other partners.

The OCC’s revised “civil money penalty matrix” for banks provides guidelines for how large a civil penalty a bank should face for violating money laundering, consumer protection, or other banking regulations.

Big penalties won’t be automatic under the guidance, which the OCC will start using Jan. 1, 2023. Still, the revisions “will help ensure that the civil money penalty is tailored to the facts and ...