Wed Dec 25 12:00:00 UTC 2024: **USAA Hit with Cease-and-Desist Order for Regulatory Violations**
**San Antonio, TX (December 24, 2024)** – USAA Federal Savings Bank, a subsidiary of the San Antonio-based financial services giant, has been issued a cease-and-desist order by the U.S. Office of the Comptroller of the Currency (OCC). The order, issued December 18th, cites “unsafe or unsound practices” related to management, earnings, IT, consumer compliance, internal audit, suspicious activity reporting, and non-compliance with heightened regulatory standards.
This latest order supersedes previous orders from 2019 and 2022 and mandates improvements to USAA’s risk and compliance management. As a result, USAA’s ability to expand its membership and introduce new products and services is temporarily restricted.
USAA spokesperson Roger Wildermuth acknowledged the bank’s shortcomings, stating that progress in addressing these issues has been slower than desired. However, he expressed confidence in USAA’s ability to meet the OCC’s requirements, highlighting increased investments in systems and training. Wildermuth emphasized the bank’s commitment to serving its members and operating in full compliance with regulations.
The announcement comes as USAA CEO Wayne Peacock prepares to retire in 2025. The full details of the OCC’s order and USAA’s remediation plan are available on the San Antonio Business Journal’s website.
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