OCCGeneralAugust 27, 2026

OCC & FDIC Finalize Rule Defining 'Unsafe or Unsound Practice' and MRA Standards

The OCC and FDIC have jointly issued a final rule that formally defines 'unsafe or unsound practice' under the Federal Deposit Insurance Act and restructures the supervisory framework for issuing MRAs and other supervisory communications. This rule directly affects how examiners at both agencies will identify and escalate compliance deficiencies—including those related to digital assets, BSA/AML, and fintech partnerships—at banks and insured depository institutions. Institutions should update their compliance risk frameworks to align with the new definitions and thresholds.

What to do

Review the final rule text to understand the revised definition of 'unsafe or unsound practice' and updated MRA issuance criteria, then assess whether any current compliance gaps—especially in digital asset or BSA/AML programs—could meet the new thresholds for formal supervisory action.

Who this affects

Bank / Credit UnionTrust Company

Does this affect your program?

Pick your institution type for an instant read on whether you're in scope — then see exactly which sections of your own policies this changes.

Source

Read the official publication

This radar entry is educational and does not constitute legal advice. Summaries are AI-assisted and grounded in the linked official source; always verify against the primary source and consult qualified legal counsel for jurisdiction-specific guidance.

Related developments

SEC

SEC Proposes Modernized Rules for Registered Transfer Agents

The SEC is proposing to overhaul the regulatory framework governing registered transfer agents, including new rules, amendments to existing rules, and updates to registration and reporting forms (Form TA-1 and Form TA-2). Crypto and fintech firms that act as — or rely on — transfer agents for digital securities should pay close attention, as modernized rules could reshape recordkeeping, operational, and compliance obligations in that space. Trust companies and broker-dealers involved in securities processing may also face updated requirements.

OCC

Regulators Clarify What Banks Can (and Can't) Tell Customers About SARs

Five federal regulators — OCC, Federal Reserve, FDIC, FinCEN, and NCUA — jointly clarified the rules around SAR confidentiality when institutions communicate with customers about potentially fraudulent transactions. The statement addresses a persistent compliance tension: institutions must protect SAR confidentiality (including not 'tipping off' subjects) while still being able to warn or question customers about suspicious activity without inadvertently disclosing a SAR has been filed. Compliance officers should review customer-facing fraud communication workflows to ensure staff are not crossing the tipping-off line.

OCC

OCC Proposes Two-Tier Framework for Violations: Substantive vs. Technical

The OCC is proposing to split regulatory violations into 'substantive' and 'technical' categories to better calibrate supervisory responses, including when Matters Requiring Attention (MRAs) are issued. For banks and trust companies engaged in crypto or fintech activities, this could affect how examiners escalate findings related to BSA/AML, KYC, or digital asset compliance gaps. Comment period is open, giving institutions an opportunity to shape the final framework.

OCC

OCC Revises Enforcement Action and MRA Policies and Procedures

The OCC has released updated internal policy manuals governing how bank enforcement actions and Matters Requiring Attention (MRAs) are issued and managed. These revisions signal a shift toward greater consistency and transparency in how the OCC responds to supervisory findings, which is directly relevant to banks and trust companies navigating crypto, BSA/AML, and fintech-related examination findings. Compliance officers should review the updated PPMs to anticipate examiner expectations.

Stay ahead of every rule change

PliOS monitors FinCEN, OCC, OFAC, the SEC and CFTC and tells you which of your policies each new rule affects — with the edit already drafted. Start free.

Run My Free Assessment