Thursday, April 24, 2025
9.5 C
London
HomeBankingRBC’s US subsidiary City National Bank hit with $65m fine from OCC

RBC’s US subsidiary City National Bank hit with $65m fine from OCC

Date:

150 Leading Organisations Set to Attend NextGen Nordics 2025

Exploring the Future of Innovation in the Nordic RegionHighlights:...

Lloyds Transitions Legacy Lending Infrastructure to the Cloud for Enhanced Efficiency

Discover how Lloyds is modernizing its lending operations through...

Hokodo Secures $10 Million for B2B Buy Now, Pay Later Innovation

Transforming Business Transactions: How Hokodo is Changing the Game...
  • 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.

Related stories

spot_img

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories