The Office of the Comptroller of the Currency (OCC) has terminated Blue Ridge Bank’s consent order. This decision ends a 22-month period where the bank worked to resolve issues with its money laundering controls. CEO Billy Beale shared his relief, saying, “It’ll be nice to get back to the banking business.” The bank can now focus fully on its core operations.
The Origins of the Consent Order
The consent order, issued in January 2024, was a result of Blue Ridge Bank’s failure to maintain a strong Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) program. The OCC found systemic issues with the bank’s internal controls and weak independent testing. Additionally, Blue Ridge did not correct problems pointed out by the OCC in a prior regulatory action from September 2022. At that time, the OCC had instructed the bank to strengthen its fintech partnerships.
Addressing the Issues: New Leadership and Strategy
Blue Ridge Bank took immediate steps to address these concerns. It hired an entirely new risk management team, including experienced chief risk and compliance officers and a new BSA officer. Beale emphasized that these professionals, recruited from larger institutions, quickly resolved the issues.
Beale credited the speed of the solution to the team’s expertise. The consent order lasted just 22 months, which is relatively brief given the complexity of the issues. The new leadership team played a crucial role in quickly bringing the bank back into compliance.
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Moving Forward: Blue Ridge Bank’s New Opportunities
With the consent order closed and capital requirements eased, Blue Ridge Bank now has the opportunity to grow. “We can better manage that capital,” Beale explained. The bank is now considering opening new branches, which is a positive move for its future.
The end of the consent order also boosts confidence. Beale believes that customers will feel more secure, and recruiting new bankers will be easier. “Our prospects will feel better about us, and it’ll make recruiting new bankers to join our team easier,” he said.
A Bright Future Ahead
The termination of the consent order allows Blue Ridge Bank to move forward. Without regulatory hurdles, the bank can focus on growth and improving its position in the banking industry. Beale summed it up well: “It’s nice to have it over with.” Now, Blue Ridge can focus on its customers, employees, and community, looking forward to future success.
