SKN | OCC Lifts Consent Order on Blue Ridge Bank, Opening Path for Expansion

Bank Strengthens BSA/AML Controls After Nearly Two Years Under Regulatory Scrutiny

The Office of the Comptroller of the Currency (OCC) has formally terminated its consent order against Blue Ridge Bank, ending nearly two years of heightened regulatory oversight focused on the bank’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program. The Richmond, Virginia-based lender announced the development Thursday, calling it a pivotal step toward returning its focus to core banking operations.

The OCC first issued the consent order in January 2024, citing systemic internal control failures, insufficient staffing, and weak independent testing within the bank’s BSA/AML framework. The regulator also said Blue Ridge had failed to address deficiencies highlighted in a September 2022 supervisory action, which directed the bank to strengthen oversight of its fintech partnerships.

New Leadership Team Accelerates Compliance Remediation

To resolve the issues outlined in the consent order, Blue Ridge Bank restructured its risk management function entirely, hiring a new chief risk officer, chief compliance officer, and BSA officer. According to CEO Billy Beale, each hire brought experience from significantly larger financial institutions, enabling the bank to implement changes quickly and effectively.

“They knew what they were doing, and got the problem solved really pretty quickly,” Beale told Banking Dive. He credited the order’s relatively short duration — 22 months — to assembling a highly qualified team capable of stabilizing and strengthening internal controls.

Beale, who took over in May 2023 after a five-decade career in banking, noted he had never worked at an institution under a regulatory order. “It’s nice to have it over with,” he said, adding that at times, the regulatory burden felt heavier than serving customers.

Regulatory Relief Opens the Door for Growth

With the consent order lifted and capital requirements reduced, Blue Ridge Bank now has more flexibility to plan strategically, including opening new branches and reinvesting in client services.

“The biggest thing — and maybe harder to quantify — is that our customers will feel better about us,” Beale said. He added that the improved standing should also make it easier to recruit new banking talent and strengthen relationships with prospective clients.

Enhanced Customer Experience Becomes a Priority

The bank has already begun rolling out upgrades aimed at improving digital banking and in-branch services. Recent enhancements include:

• A revamped treasury management platform

• Replacement of cash-dispensing machines with full-service ATMs

• An online account opening platform launching early next year

These initiatives reflect Blue Ridge’s shift from regulatory remediation back to customer-focused modernization.

An OCC spokesperson did not respond to a request for comment.

Closing Insight

With the consent order behind it, Blue Ridge Bank has an opportunity to reposition itself as a strengthened, more resilient institution. By rebuilding its compliance foundation and investing in customer experience, the bank enters its next chapter with the operational stability and strategic flexibility needed to compete in a rapidly evolving regional banking landscape.

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