The Bank Slate


Blue Ridge hit with OCC order tied to fintech supervision

Blue Ridge Bankshares has entered into a written agreement with the Office of the Comptroller of the Currency instructing the Charlottesville, Va., company to improve how it monitors fintech relationships.

The $2.8 billion-asset company disclosed in a regulatory filing that, under the Aug. 29 agreement, its bank must create a compliance committee and adopt, implement and follow a written program to assess and manage the risks posed by third-party fintech relationships. 

The bank is required to obtain OCC non-objection before onboarding or signing a contract with a third-party fintech partner. Non-objection is also required before Blue Ridge offers new products or services or conducts new activities through existing fintech partners.

The agreement also requires Blue Ridge to adopt a written Bank Secrecy Act risk assessment program and adopt a revised BSA audit program that includes an expanded scope and risk-based review of activities conducted through fintech partners.

Blue Ridge also has to give the OCC an action plan and a written report of its suspicious activity monitoring, including high-risk customer activity involving third-party fintech partners. 

Blue Ridge said it “continues to cooperate with the OCC, and to work to bring the bank’s fintech policies, procedures and operations into conformity with OCC directives.”

The order comes months after Blue Ridge’s proposed merger with FVCBankcorp was held up, and ultimately terminated, due to an issue raised by the OCC. While the issue was never disclosed, many believed it had to do with Blue Ridge’s fintech relationships.

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