Letter to the OCC on the NPRM re: Violations of Laws and Regulations

To Whom it May Concern:

The American Bankers Association (ABA) appreciates the opportunity to comment on the Office of the Comptroller of the Currency's (OCC) Notice of Proposed Rulemaking: Matters Requiring Attention for Violations of Laws and Regulations (NPRM). Following the OCC and FDIC's September 2026 joint final rule on unsafe or unsound practices and standards governing the issuance of matters requiring attention (MRAs), the OCC separately proposes to distinguish substantive violations of law or regulation that may support an MRA from technical violations.

I. Summary of the Comment

ABA strongly supports the OCC's effort to distinguish substantive from technical violations and to reserve MRAs for substantive issues that are most critical to the prudent operation of the institution. The proposed rule recognizes that isolated or minor violations should not trigger the formal corrective-action, board-notification, and other supervisory consequences of an MRA. ABA recommends that the OCC finalize the proposed reforms with the following targeted refinements to make the final rule clear, objective, and consistent.

First, ABA urges the OCC to preserve clear limits on MRAs. MRAs should be based on substantive violations of banking or banking-related laws or regulations within the OCC’s legal authority. Written communications of findings should identify the specific legal provision violated and explain the factual bases for the finding. Timely self-identification and reasonable remediation should not support the issuance of an MRA.

Second, ABA recommends requiring a material impact rather than a more-than-minimal impact for substantive violations. Materiality is more objective, easier to apply consistently, and better aligned with the standard for MRAs based on unsafe or unsound practices.

Download the comment letter to read the full text.