Office of the Comptroller of the Currency (“OCC”) examiners stated on Monday that they will no longer make recommendations on how banks can better comply with anti-money laundering (“AML”) regulations.  Rather, the policy change designates all AML problems either as matters requiring attention or as violations of law.  Thus, all AML problems could see enforcement actions if they are not addressed quickly.

Previously, in certain instances, the OCC provided recommendations to the banks it oversaw regarding ways to address their compliance with AML regulations.  Although banks were expected to follow the recommendations, they did not face enforcement action for failing to do so.

At a meeting of the Association of Certified Anti-Money Laundering Specialists in Manhattan yesterday, James F. Vivenzio, Senior Counsel for Bank Secrecy Act/AML for the OCC, advised that in light of the policy-shift, banks should work closely with their examiners when they encounter an AML compliance issue in order to show that they are serious about fixing the problem.  In turn, the examiners could give the banks more time to address any AML compliance issues.

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Photo of David Picon David Picon

David A. Picon is a seasoned litigator who has tried dozens of cases in various tribunals for financial services firms and public and private companies. David represents clients in complex commercial disputes in a wide range of matters, including complex securities issues, commodities…

David A. Picon is a seasoned litigator who has tried dozens of cases in various tribunals for financial services firms and public and private companies. David represents clients in complex commercial disputes in a wide range of matters, including complex securities issues, commodities and derivatives-related disputes, fraudulent transfer actions, alleged Ponzi schemes, and contract and employment-related disputes.

A member of the Commercial Litigation and Securities Litigation practices, David appears in numerous judicial and administrative forums in investigations brought by the SEC, FINRA and other regulatory bodies for financial services firms. He also has broad experience in large chapter 11 cases, representing debtors, as well as creditors and statutory committees. Additionally, David has substantial counseling experience in general commercial disputes.

David is a frequent speaker on matters related to the financial services industry and the co-author of “Broker-Dealer Litigation and Arbitration,” Chapter 86 of the multi-volume treatise, Commercial Litigation in New York State Courts.

David also serves on the boards of The Harlem School of the Arts and JVS of Metrowest.

David is the chair of the Firm’s Billing and Collections Committee, and a member of the Firm’s Hiring Committee and Pro Bono Committee.