SAN ANTONIO – The U.S. Office of the Comptroller of the Currency issued a cease-and-desist order to USAA on Dec. 18 regarding what the national banking regulator described as “new or ongoing violations” by USAA Federal Savings Bank.

The bank is part of the San Antonio-based insurance and financial services company USAA.

The order alleges the bank engaged in “unsafe or unsound practices, including those related to management, revenue, information technology, consumer compliance and internal audit; Suspicious activity reporting violations; and failure to comply with policies that set more stringent standards for the bank.”

The order replaces cease-and-desist orders issued against the bank in January 2019 and March 2022. It also sets out requirements for the further development of the bank’s risk and compliance management.

USAA spokesman Roger Wildermuth said in a prepared statement that “although our progress has not been consistent or rapid enough,” the bank is well positioned to complete the work required by the national regulator.

“With a stronger foundation for risk prevention and mitigation, we will continue to improve our capabilities and processes to ensure we consistently provide superior service to our members,” Wildermuth said.

The order also limits USAA’s ability to expand its membership criteria and add new products and services. USAA provides banking and insurance services to military members and veterans.

“Our path for the future is clear,” said Wildermuth. “Effective risk management and legally compliant actions are the basis for looking after our members and fulfilling our mission. We continue to identify and resolve issues while strengthening the rigor of our programs and processes.”

He added that USAA is investing in additional systems and training.

“Our focus is on getting this right for USAA and our members,” he said.

USAA CEO Wayne Peacock announced his plan to retire in 2025 earlier this year.

Read more about this story in the San Antonio Business Journal website.

Editor’s note: This story was published via a partnership between KSAT and the San Antonio Business Journal.