OCC releases bank supervision operating plan for 2020


The U.S. Office of the Comptroller of the Currency (OCC) released its bank supervision operating plan for fiscal year 2020 this week.

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The plan provides a foundation for policy initiatives and supervisory strategies for national banks, federal savings associations, federal branches, federal agencies, and technology service providers. OCC staff members use this plan to guide their supervisory priorities, planning, and resource allocations.

The FY 2020 plan focuses on several key supervisory strategies, including cybersecurity and operational resiliency, with emphasis on threat vulnerability and detection, access controls and data management, and managing third-party connections.

It will also focus on Bank Secrecy Act/anti-money laundering (BSA/AML) compliance management, with emphasis on customer due diligence and beneficial ownership; determining whether BSA/AML risk management systems match the complexity of business models and products offered; evaluating technology solutions to perform or enhance BSA/AML oversight functions; and assessing the adequacy of suspicious activity monitoring and reporting systems and processes.

Further, the plan looks at commercial and retail credit underwriting practices and oversight and control functions. It also examines strategies related to the impact of changing interest rate outlooks on bank activities and risk exposures.

Finally, the 2020 plan focuses on technological innovation and implementation; preparedness for the current expected credit losses (CECL) account standard; and the preparation for the potential phase-out of the London Interbank Offering Rate (LIBOR).

The OCC will provide updates about supervisory priorities in the coming months.

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