Teleion | Regulatory remediation and BaaS growth enablement

Context

A sponsor bank operating in the banking-as-a-service sector engaged Teleion to support a large-scale regulatory remediation program addressing deficiencies across its AML, BSA, and OFAC compliance framework.

The challenge

Regulatory findings had resulted in supervisory restrictions that constrained the bank's ability to onboard new fintech partners and scale its BaaS business. The bank needed to remediate regulatory concerns, strengthen compliance operations, and rebuild examiner confidence while preserving its long-term growth objectives.

Our approach

Partnered with bank leadership to design and execute a multi-year remediation program spanning operational and technology transformation.
Developed an enterprise-wide regulatory remediation roadmap aligned to examiner expectations.
Established a governance structure to manage remediation activities, milestones, and regulatory reporting.
Enhanced AML, BSA, and OFAC processes, controls, and operating procedures, and optimized compliance operations for effectiveness, scalability, and oversight.
Implemented technology enhancements to strengthen monitoring, investigation, and reporting capabilities.
Supported ongoing engagement with regulators and examination teams to demonstrate progress and sustain transparency.
Built sustainable compliance and risk management capabilities to support future BaaS growth.

Results

64%

of outstanding regulatory findings closed with examiner agreement in the first 12 months

Remediation materially improved compliance operations, governance, and control effectiveness. Demonstrated progress enabled constructive discussions with regulators on relaxing certain supervisory restrictions.

By balancing remediation with strategic business objectives, the bank re-established credibility with regulators and began reopening growth opportunities, positioning its BaaS platform for long-term expansion in a controlled, compliant, and sustainable manner.

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