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Nov 13, 2023

How Middesk Simplifies the OCC Audit Process for Banks and Fintechs

Teddy Butz

In brief:

  • Banks and fintechs facing OCC audits must compile very specific information to appease the auditor
  • Legacy KYB solutions are often slow to respond, or can’t provide that information at the granular level the OCC demands
  • Unlike other solutions, Middesk’s comprehensive KYB reports provide everything the OCC requires, and they can be downloaded from your dashboard with one click

Know Your Business (KYB) verification is critical for fintechs to maintain compliance with their banking partners. However, when audit time comes around, the process of manually assembling all the required documentation can be an incredible hassle. Fintechs need to demonstrate adherence to KYB rules and provide extensive proof of their verification processes. This documentation is tedious to pull together, and slow vendor responses make getting the information difficult.

What does the Comptroller of Currency do?

The Office of the Comptroller of the Currency (OCC) has the job of checking if banks are applying safe practices, treating customers fairly, and complying strictly with banking regulations. In the worst case scenario, the OCC can remote bank officers or directors and deny or cancel bank charters. This can also affect fintechs, who are working under sponsor banks. 

Anti-money laundering laws require that banks and fintechs verify the identity of every new customer they approve. OCC audits are a safeguard requiring that banks and fintechs show the proof that they have properly applied KYB processes to verify each customer. Both types of institutions must ensure that they are following the OCC’s regulations and be able to back that assertion up with a comprehensive audit trail.

The struggle with audit documentation

The OCC will request that proof in the form of tangible documentation that the bank or fintech performed the KYB check. They will likely further require very specific pieces of information related to data security, infrastructure controls, etc. 

As you can imagine, gathering all these verification data points in preparation for an audit creates major friction. In the past, with legacy KYB solutions, banks and fintechs have found themselves scrambling for disparate pieces of evidence, such as screenshots, to show to the auditor. 

Worse, they find out the hard way that legacy KYB solutions provide  very little customer support around audits. They may find themselves waiting days or weeks for the required documentation from their KYB vendor. This lack of visibility puts compliance officers in a tough position with the OCC.

How Middesk helps fintechs simplify OCC audits 

Middesk was built differently than legacy KYB solutions. When it comes to KYB, most legacy KYB solutions simply provide a “rejected” or “approved” answer. 

But with Middesk, for every business verified, fintechs can instantly download a comprehensive PDF report summarizing all KYB checks performed. This will complete everything on your OCC audit checklist as detailed in the OCC audit handbook, including:

  • Documentation of exactly which data sources were utilized for verification
  • Detailed results of watchlist screening, including checked lists and flagged entities
  • Summary of all registration documents and filings accessed
  • Event logging showing each verification in real time


Middesk OCC audit process.

Unlike other vendors that provide limited visibility, Middesk offers complete transparency into the KYB process. 

Another advantage over legacy KYB vendors is that Middesk provides fast and efficient customer support. We understand that an audit is stressful. If for some reason simply downloading our comprehensive self-serve PDF reports isn’t enough, we are there to support your business on the day that you need it. There will be no waiting days or weeks. 

Enjoy peace of mind with Middesk

OCC audits are a hassle. They can even be scary. This is especially true when you find that you can’t count on your legacy KYB vendor to provide the granular information your auditor requires. 

Middesk alleviates the pain of audits with comprehensive, easily-downloaded data reports, detailed audit trails, and ultra-responsive customer support. Simplify your next OCC audit with Middesk's advanced KYB solutions. Request a demo today to learn more about Middesk!

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