OCC announces actions to reduce regulatory burden for community banks and seeks input on core service providers
On November 24, the OCC announced a series of actions aimed at reducing regulatory burden and supporting the competitiveness of community banks. In three new bulletins, the agency: (i) released new Community Bank BSA/AML Examination Procedures designed to reduce unnecessary burdens for community banks that generally present low money laundering or terrorist financing risk; (ii) discontinued its annual Money Laundering Risk (MLR) System data collection citing the availability of less burdensome means of assessing money laundering and terrorist financing risk; and (iii) issued an RFI in the Federal Register on community banks’ engagement with core service providers and other essential third-party service providers soliciting input on issues such as contract negotiations, fees, billing practices, oversight, innovation, data access, and interoperability, as well as potential actions the OCC could take to address these challenges and reduce supervisory burden. Comments must be submitted by January 27, 2026.