The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance. The MUFG Union Bank is based in the United States and is owned by the Japanese banking entity Mitsubishi UFJ Financial Group. This action was the result of the bank's unsafe or unsound practices in this area and for the bank’s non-compliance with the interagency guidelines establishing information security standards. The Order requires the bank to improve longstanding technology and operational risk governance, technology risk assessments, internal controls, and staffing deficiencies to address the unsafe or unsound practices.
Within 90 days of the effective date of this Order, the bank shall develop an acceptable, written action plan detailing the remedial actions necessary to achieve compliance with Articles V through XI of this Order, thereby addressing the unsafe or unsound practices and noncompliance. The bank shall submit the action plan to the Examiner-in-Charge for review and prior written determination of no supervisory objection. The action plan, at a minimum, shall specify a description of the corrective actions needed to achieve compliance with each Article of this Order, reasonable and well-supported timelines for completion of the corrective actions required by this Order, and the person(s) responsible for completion of the corrective actions required by this Order. The Board shall ensure that the bank has timely adopted and implemented all corrective actions required by this Order. The Board shall also verify that the bank adheres to the corrective actions and that these actions are effective in addressing the identified deficiencies. In each instance in which this Order imposes responsibilities upon the Board, it is intended to mean that the Board shall:
- authorize, direct, and adopt corrective actions on behalf of the bank, as may be necessary to perform the obligations and undertakings imposed on the Board by this Order
- ensure the bank has sufficient processes, management, personnel, control systems, and corporate and risk governance to implement and adhere to all provisions of this Order
- require that bank management and personnel have sufficient training and authority to execute their duties and responsibilities pertaining to or resulting from this Order
- hold bank management and personnel accountable for executing their duties and responsibilities pertaining to or resulting from this Order
- require appropriate, adequate, and timely reporting to the Board by bank management of corrective actions directed by the Board to be taken under the terms of this Order
- address any noncompliance with corrective actions in a timely and appropriate manner
Keywords: Americas, US, Banking, Operational Risk, Cease and Desist Order, Regtech, MUFG, Technology Risk, Compliance Risk, Governance, OCC
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.