- The US Office of the Comptroller of the Currency (OCC) has imposed a $65 million fine on City National Bank, the US subsidiary of Royal Bank of Canada (RBC).
- The fine is attributed to “systemic deficiencies in the bank’s risk management and internal controls,” with the OCC claiming the bank engaged in unsafe or unsound practices and failed to establish effective risk management.
- The penalty is to be paid to the US Treasury, and the OCC has ordered City National Bank to initiate broad and comprehensive corrective actions, focusing on its strategic plan and operational risk management.
- The cease-and-desist order mandates improvements in internal controls, compliance risk management (including BSA/anti-money laundering and fair lending), strategic risk management, and investment management practices.
- A City National Bank spokesperson mentions the commitment to resolving the identified issues promptly, focusing on strengthening infrastructure and systems to align with the bank’s size and business model.
- RBC invested nearly $2.95 billion into City National Bank in the previous year, and it initially acquired the bank for $5.4 billion in 2015.
RBC’s US subsidiary City National Bank hit with $65m fine from OCC
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