OCC Hits Capital One with $80M Civil Penalty
August 7, 2020
The Office of the Comptroller of the Currency (OCC) assessed an $80 million
civil money penalty against Capital One, N.A., and Capital One Bank (USA), N.A.
OCC took these actions based on the bank's failure to establish effective risk
assessment processes prior to migrating significant information technology
operations to the public cloud environment and the bank's failure to correct the
deficiencies in a timely manner. In taking this action, the OCC positively
considered the bank's customer notification and remediation efforts. While the
OCC encourages responsible innovation in all banks it supervises, sound risk
management and internal controls are critical to ensuring bank operations remain
safe and sound and adequately protect their customers. The OCC found the noted
deficiencies to constitute unsafe or unsound practices and resulted in
noncompliance with 12 C.F.R. Part 30, Appendix B, "Interagency Guidelines
Establishing Information Security Standards."
The OCC penalty will be paid to the U.S. Treasury.
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