USAA faces penalties for not addressing issues across various sectors
USAA Federal Savings Bank Under OCC's Comprehensive Cease-and-Desist Order
USAA Federal Savings Bank, a financial institution that provides banking and insurance products to military members, veterans, and their families, is currently under a cease-and-desist order issued by the Office of the Comptroller of the Currency (OCC) as of mid-2025[1]. The order, made public on Wednesday, reflects ongoing regulatory compliance issues within the bank.
The cease-and-desist order signifies significant regulatory concerns about USAA's practices or risk management, requiring the institution to rectify deficiencies to comply fully with applicable banking regulations. The specifics of the order or any updates on USAA’s progress in meeting the OCC’s requirements were not detailed in the available information.
The OCC's order outlines requirements to advance USAA's risk and compliance management, including the need for a unifying enterprise risk management framework to encompass and integrate all of the OCC's requirements[1]. The bank is prohibited from adding new products or services or expanding its membership criteria without evaluating and documenting the associated risks.
The order also directs USAA to implement a fraud risk management program commensurate with its risk profile and appetite. Within 90 days, the bank must submit to its examiner an annual plan that details a proposed payment review process to ensure that any incentive-based compensation payments to any covered individual reflect any adverse risk outcomes.
The OCC's latest order replaces the 2019 and 2022 actions against the bank. The order also limits the addition of some new products or services and puts restrictions around USAA's ability to expand its membership criteria. The bank is also required to take comprehensive corrective actions to improve its risk governance and risk management related to compliance, information technology, fraud, and third-party, affiliate, and shared services.
In a related development, USAA's CEO, Wayne Peacock, is stepping down in the first half of 2025. The OCC's order notes that USAA's interim chief risk officer, George Stamatelatos, is part of the company's executive council. The bank is investing in additional systems, training, and reinforcing a strong risk management culture to address the issues identified in the OCC's order.
The OCC reserves the right to assess penalties or take other enforcement actions if the bank fails to address the issues identified in the most recent order. Additional specific updates on remediation status have not been publicly detailed in the latest sources.
[1] Source: Office of the Comptroller of the Currency (OCC) press release, July 2025.
- Despite being a prominent financial institution in the business sector, USAA Federal Savings Bank is currently adhering to a cease-and-desist order from the Office of the Comptroller of the Currency (OCC), which demands improvements in risk and compliance management, including a unifying enterprise risk management framework and a fraud risk management program.
- The ongoing regulatory compliance issues at USAA Federal Savings Bank have led to a comprehensive cease-and-desist order from the OCC, restricting the bank from adding new products or services or expanding its membership criteria without evaluating and documenting the associated risks.
