US regulator orders USAA Federal Savings Bank to correct unsafe practices By Reuters

(Reuters) – The U.S. Federal Savings Bank has been ordered to fix a series of long-standing regulatory deficiencies that amounted to unsafe and unreasonable practices, the U.S. Office of the Comptroller of the Currency (OCC) said on Wednesday.

Identified issues related to governance, revenue, information technology, consumer compliance and internal audit and suspicious activity reporting violations, some of which the agency has identified since at least 2019, the office said in a statement.

USAA Federal Savings is part of the United Services Automobile Association, founded to provide financial services to members of the US military.

According to the OCC, the order announced Wednesday included parts of earlier orders issued in 2019 and 2022 that USAA had not yet complied with, and ordered the bank to improve compliance, fraud and third-party risk management, as well as risk management. It also prevents the bank from adding certain products and services.

In a statement, USAA said it was working to resolve the issues identified.

“While our progress has not been consistent or rapid enough, the bank is well positioned to complete this work,” the report said, adding that its credit ratings, capital and liquidity “significantly exceed regulatory requirements.”