• OCC ends its consent order against Blue Ridge Bank over AML failures
• Order stemmed from breakdowns in BSA AML controls and weak independent testing
• Bank hired new risk compliance and BSA leaders with large bank experience
• CEO Billy Beale credits rapid remediation to bringing in experienced talent
• Lifting the order reduces capital constraints and allows new branch growth
• Bank now focusing on customer experience including treasury upgrades and new ATMs

Blue Ridge Bank has emerged from nearly two years of regulatory scrutiny after the Office of the Comptroller of the Currency formally terminated a consent order tied to weaknesses in the bank’s anti money laundering program. 

The Richmond based lender announced the development on Thursday, marking a significant step in its effort to restore confidence among customers, regulators and prospective employees.

The original order, issued in January 2024, accused the fintech focused bank of repeatedly failing to build and maintain a robust and properly staffed Bank Secrecy Act and Anti Money Laundering compliance program. 

Regulators said the institution suffered systemic breakdowns in internal controls, weak independent testing and a persistent inability to remediate issues that had been highlighted as far back as September 2022, when the OCC demanded stronger oversight of fintech partnerships.

In response, the bank undertook a sweeping leadership overhaul. Chief executive Billy Beale said Blue Ridge hired an entirely new risk management team, including new chief risk and compliance officers and a new BSA officer. 

All of them, he noted, arrived from larger institutions and brought the expertise needed to resolve long standing deficiencies.

Beale said the consent order’s relatively short life span of twenty two months was directly tied to the bank’s ability to bring in seasoned talent who could quickly stabilise the compliance environment. 

He described the process as intense and at times exhausting, acknowledging that regulatory pressures often threatened to overshadow the bank’s day to day work with customers.

Beale joined Blue Ridge in May 2023 after a five decade banking career that included leadership positions at Community Bankers’ Bank and Union Bank and Trust, a predecessor to Atlantic Union. 

He recalled never having worked at a bank that faced even a memorandum of understanding, let alone a consent order, and said he was relieved to move past the episode.

With the order now closed, the bank expects to benefit from reduced capital requirements and a renewed ability to manage capital more strategically. 

Beale said the removal of constraints opens the door to possible branch expansions and enhances Blue Ridge’s attractiveness to both customers and potential hires.

He added that the end of the enforcement action could also carry intangible benefits such as improved customer perception and stronger confidence among business prospects evaluating the bank as a potential partner.

Blue Ridge has recently shifted its focus toward improving the customer experience. This year, the bank upgraded its treasury management platform and replaced cash dispensing machines with full service ATMs. 

It also plans to launch an online account opening platform early next year, signalling a push to modernise its services while returning attention to core banking operations.

For Beale and his team, the lifting of the consent order marks the end of a difficult chapter and the beginning of a period in which the bank hopes to rebuild momentum, strengthen relationships and redirect its energy from regulatory remediation back to growth and customer service.