OCC to reduce BSA/AML reg burden for community banks 

The OCC announced supervisory and regulatory actions to reduce regulatory burdens for community banks related to the Bank Secrecy Act and anti-money laundering requirements. 

Details: In bulletins to national banks, the OCC: 

• Issued Community Bank Minimum Bank Secrecy Act Examination Procedures that tailor the agency’s application of the BSA/AML examination procedures for all community banks, effective for examinations beginning Feb. 1, 2026. 

• Announced that it is discontinuing its Annual Money Laundering Risk System data collection to reduce reporting burden on community banks. 

New RFI: The OCC also issued a request for information to better understand the challenges community banks face with core service providers and other essential third-party service providers. 

More to Come: The OCC said its work to prioritize community bank reforms is ongoing and includes work on a proposal to reduce the Community Bank Leverage Ratio requirement that will be announced soon. The OCC last month announced several ICBA-supported efforts to reduce the regulatory burden for community banks.    

ICBA View: In a national news release after last month’s announcement, ICBA President and CEO Rebeca Romero Rainey commended the OCC for taking meaningful steps to reduce unnecessary regulatory burdens on community banks.  

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