Enforcement Action Types
These are types of formal enforcement actions the Office of the Comptroller of the Currency (OCC) is authorized to take against financial institutions that the OCC supervises and parties affiliated with them.
The term "banks" includes national banks, Federal savings associations and their subsidiaries, and Federal branches and agency offices regulated by the OCC. The term "institution-affiliated party," or IAP, is defined in 12 USC 1813 (u) and includes bank directors, officers, employees, and controlling shareholders.
- Capital Directive (CD): Pursuant to 12 USC 3907 and 12 CFR 3, the OCC may issue a capital directive when a bank fails to achieve or maintain capital at or above the minimum ratios required by 12 CFR 3, subparts B or H; a written agreement; or a condition for approval of an application. A capital directive may require the bank to achieve its minimum capital requirement by a specified date, submit and adhere to an acceptable capital plan, and take other actions to achieve the required capital ratios.
- Cease & Desist Orders (C&D) or Personal Cease-and-Desist Order (PC&D): A final order issued pursuant to 12 USC 1818(b) that may, among other things, require a bank or IAP to cease and desist from an unsafe or unsound practice or violation and to take affirmative action to correct or remedy any conditions resulting from any violation or practice.
- Restitution Order: A type of C&D or PC&D requiring a bank or IAP to take affirmative action to correct or remedy any conditions resulting from any violation or unsafe or unsound practice, including a requirement to make restitution (or provide reimbursement, indemnification, or guarantee against loss).
- Civil Money Penalty Orders (CMP): An order, often under 12 USC 1818(i), requiring a bank or an individual to pay a monetary penalty.
- Formal Agreements (FA): A written agreement signed by the OCC and the board on behalf of a bank.
- GLBA Agreement: An agreement between a national bank and the OCC pursuant to 12 USC 24a(e)(2) and (3) and 12 CFR 5.39(j)(1)(ii) and (iii).
- Prompt Corrective Action Directives (PCAD): FDIC-insured banks are subject to mandatory and discretionary restrictions and actions depending upon the bank’s PCA capital category. Mandatory restrictions and actions are effective when the bank is notified or is deemed to have notice of its PCA capital category. The OCC imposes discretionary restrictions and actions on the bank through the issuance of a PCA directive.
- Safety & Soundness Orders (SASO): (issued under 12 CFR 30) If a bank fails to submit or implement an acceptable safety and soundness plan pursuant to 12 CFR 30, the OCC must require the bank to correct the deficiencies and may require the bank to take other actions under 12 USC 1831p-1(e)(2)(B) until the deficiency has been corrected.
- Prohibition Order (1818(e)): An order prohibiting an IAP from any participation, in any manner, in the conduct of the affairs of any insured depository institution.
- Prohibition/Suspension Order for Criminal Conduct (1818(g)): An order that temporarily suspends an individual indicted for certain crimes from office or prohibits the individual from participation, in any manner, in the conduct of the affairs of any insured depository institution.
- Removal, suspension, and debarment of accountants (1831m): A removal, suspension, or debarment of an independent public accountant, potentially including his or her accounting firm, from performing audit services required by 12 USC 1831m and potentially 12 CFR 363.
- Securities Enforcement Actions (SEC): The OCC has the power to institute enforcement proceedings, including civil money penalties, cease and desist orders, injunctions, censures, suspensions, bars, removals, limitations, and other remedies, under the federal securities and banking laws for violations of law, including violations of federal securities laws.
- 1829 Prohibition Notifications (1829): An 1829 prohibition notification is a letter sent by the OCC to an individual who has been convicted of, or agreed to enter into a pretrial diversion program or similar program in connection with a prosecution for, certain crimes informing the individual that he or she has been automatically prohibited by operation of law (12 USC 1829) from being an IAP, owning or controlling any insured depository institution, or otherwise participating in the affairs of any insured depository institution except with the prior written consent of the Federal Deposit Insurance Corporation (FDIC).
- Notice (Notice of Charges/Notice of Assessment of Civil Money Penalty): Notice served by the OCC upon a respondent commencing litigation against the respondent.
For more information on OCC enforcement actions, please see the following policies and procedures manuals:
- PPM 5000-7, "Civil Money Penalties" (PDF)
- PPM 5310-3, "Bank Enforcement Actions and Related Matters" (PDF)
- PPM 5310-13, "Institution-Affiliated Party Enforcement Actions and Related Matters" (PDF)