Monday, September 20, 2021

MUFG Union hit with consent order tied to IT oversight

MUFG Union Bank has entered into a consent order with the Office of the Comptroller of the Currency.

MUFG Americas Holding, the $133 billion-asset bank’s parent company, disclosed in a regulatory filing Monday that the Sept. 20 order is tied to “deficiencies in Union Bank’s technology and operational risk management.” 

MUFG Americas is part of Japan's Mitsubishi UFJ Financial Group. A recent report from Bloomberg News said that Mitsubishi UFJ Financial Group is reporting looking to sell Union Bank.

The bank neither admitted or denied wrongdoing as part of the order. The order did not impose any civil money penalty or fines. 

Union Bank must provide the OCC with written plans to improve reporting to its board and senior management on technology and operations risk. The bank must also improve the technology risk assessment process and timely and effectively implement its IT and operational risk governance frameworks and supporting programs. 

The bank is also required to improve policies, procedures, processes and internal controls within its “technology and operations environments, commensurate with the level of risk and complexity of [its] activities,” among other things. 

“Union Bank’s board … and management are committed to taking the necessary actions to fully address the provisions of the” order, the filing said. The order “finds that Union Bank has already begun corrective action and has committed resources to remediate the deficiencies identified.”

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