Hollywood's bank to the stars fined US$65 million for risk-control failures

City National Bank, the Los Angeles-based lender that’s owned by Canada’s largest financial institution, has been hit with a US$65 million civil penalty for failing to have proper risk controls.

The Office of the Comptroller of the Currency said it will require the bank to take “broad and comprehensive corrective actions” to strengthen its internal practices, including its measures to stop money laundering. 

City National, which is known for its roster of Hollywood clients, is owned by Royal Bank of Canada, which acquired it in 2015. In the settlement with the OCC, RBC doesn’t admit to or deny the regulator’s findings.

RBC and City National didn’t immediately respond to requests for comment.