The Office of the Comptroller of the Currency (OCC) has initiated an enforcement action against Axiom Bank in Florida, citing concerns over suspicious activities, inadequate adherence to the Bank Security Act and anti-money laundering regulations, as well as deficiencies in the bank's risk management practices.
Maitland-based Axiom Bank has reached a compliance agreement with the OCC that specifies how the bank must revise its BSA/AML action plan, internal controls, staffing, and risk management strategies to align with legal requirements.
The development comes closely on the heels of the OCC and other federal agencies imposing over $3 billion in fines on TD Bank, along with restricting its U.S. operations. These penalties stemmed from a Justice Department investigation revealing that TD branches in New York and New Jersey were used to launder hundreds of millions of dollars linked to illegal fentanyl trafficking.
The enforcement action against Axiom Bank is also part of a broader trend of increased penalties against banks, coupled with regulatory initiatives addressing third-party partnerships.
Originally established in 1984 as Washington Shores Savings Bank and rebranded as Axiom in 2014, the bank has formed multiple fintech partnerships in recent years. In 2022, Axiom collaborated with open banking fintech Raisin to enhance the distribution of its savings products, and it also serves as the banking partner for immigrant-focused fintech Majority.
The bank, last year, teamed up with Cable, a tech company that automates compliance testing for banks and fintech firms.
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