National Regulator Issues Cease-and-Desist Order to USAA Bank
USAA Federal Savings Bank faces a cease-and-desist order from the U.S. Office of the Comptroller of the Currency for ongoing violations. The order highlights unsafe practices, compliance issues, and limits the bank's ability to expand. USAA remains committed to improving risk management and compliance under CEO Wayne Peacock's leadership, who plans to retire in 2025.
USAA CEO Wayne Peacock has announced his plans to retire in 2025.
SAN ANTONIO – On December 18, the U.S. Office of the Comptroller of the Currency issued a cease-and-desist order to USAA Federal Savings Bank. The national bank regulator cited "new or continuing violations" involving the bank, which operates as part of the San Antonio-based insurance and financial services company, USAA.
The order accuses the bank of engaging in "unsafe or unsound practices," including issues related to management, earnings, information technology, consumer compliance, and internal audits. It also cites violations of suspicious activity reporting requirements and failure to comply with guidelines for heightened standards applicable to the bank.
The new order supersedes previous cease-and-desist orders issued to the bank in January 2019 and March 2022, outlining steps to improve the bank’s risk and compliance management.
In a prepared statement, USAA spokesperson Roger Wildermuth acknowledged that while progress has been made, it has not been "consistent or swift enough." He stated, "With a stronger foundation in place to prevent and mitigate risk, we will continue to enhance our capabilities and processes to ensure we consistently serve our members with excellence."
The order also imposes restrictions on USAA's ability to expand its membership criteria or introduce new products and services. USAA primarily provides banking and insurance services to military members and veterans.
Moving forward, our path is clear,” Wildermuth stated. “Effectively managing risk and ensuring compliance are fundamental to serving our members and fulfilling our mission. We remain committed to identifying and resolving issues while enhancing the rigor of our programs and processes.”
He also noted that USAA is investing in new systems and additional training.
“Our focus is on getting this right for USAA and our members,” he emphasized.
Earlier this year, USAA CEO Wayne Peacock announced his intention to retire in 2025.
What's Your Reaction?
