[sheet: Cover]

[sheet: Cover]
Field | Value
Document Title | OCC & FinCEN Correspondence Log — Belmont Ridge Bank NA BSA/AML Remediation
Prepared By | Calderwood & Harkness LLP
C&H Matter No. | 1045-00002
Client | Belmont Ridge Bank National Association (OCC Charter No. 48271; FDIC Cert. No. 31845)
Holding Company | Belmont Ridge Financial Group, Inc. (BRFG; NYSE: BRFG; EIN: 83-2947561)
BRB EIN | 13-6148320
Consent Order Reference | OCC Consent Order No. OCC-2025-003 (Effective January 15, 2025)
Regulatory Contacts — OCC | Jonathan Frey, National Bank Examiner / Examiner-in-Charge, OCC Northeastern District Office, 340 Madison Avenue, New York, NY 10017
Regulatory Contacts — FinCEN | Angela Drummond, Associate Director, Enforcement Division, FinCEN
C&H Responsible Partner | Philip Hartmann, Banking & Finance Practice Group
C&H Lead Associate | Yuki Nakamura, Litigation (General) Practice Group
C&H Working Associate | Carlos Espinoza, Litigation (General) Practice Group
BRB Primary Contacts | Gregory Nardone (General Counsel); Patricia Langston (CCO); Thomas Ikeda (BSA Officer)
Independent Consultant | Thornfield Consulting Group LLC (Ref: TCG-BRB-2025-001) — Dr. Vivian Castellano, Managing Director
Confidentiality | ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT — DO NOT DISTRIBUTE
Document Status | Living Document — Updated Continuously Through February 15, 2026
Date Created | February 10, 2025
Last Updated | February 15, 2026
[sheet: Correspondence Log]
Entry No. | Date | Time | Regulator | Direction | Format | Sender Name | Sender Title & Organization | Recipient Name | Recipient Title & Organization | CC / Additional Participants | Subject / Description | Consent Order Article Reference | Related Deadline | Enclosures / Attachments | Follow-Up Required | Follow-Up Description | Follow-Up Due Date | Follow-Up Status | Document Repository Reference | Notes
1 | 2025-01-15 | OCC | Inbound | Letter | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Diane Whitford | CEO & Board Chair, Belmont Ridge Bank NA | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB) | Issuance of Consent Order No. OCC-2025-003 — BSA/AML and OFAC compliance deficiencies | All Articles | 2025-02-28 | Consent Order No. OCC-2025-003 (full text) | Yes | Board Resolution acknowledging Consent Order due within 45 days; CMP payment of $14,500,000 due within 60 days; independent consultant engagement due within 30 days | 2025-02-28 | Complete | REG-001 | Consent Order effective date. Five core deficiency categories: (i) OFAC sanctions screening failures (12% unscreened NovaPay transactions — approx. 3.8M of 31.7M in CY 2023); (ii) SAR filing deficiencies (2,400 unreviewed alerts, 78-day avg. filing time); (iii) CDD/EDD failures (47,000 high-risk accounts); (iv) model validation deficiencies (Veridian TMS v.8.3 last validated March 2021); (v) board oversight deficiencies. CMP: $14,500,000.
2 | 2025-01-20 | OCC | Outbound | Letter | Gregory Nardone | General Counsel, Belmont Ridge Bank NA | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Preliminary acknowledgment of receipt of Consent Order No. OCC-2025-003; confirmation of intent to engage outside counsel and independent consultant | General | None | No | N/A | REG-002 | Sent by BRB prior to C&H engagement. Drayton Mercer LLP engagement terminated January 2025.
3 | 2025-01-31 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB) | Proposed Independent Consultant — Thornfield Consulting Group LLC; seeking OCC non-objection pursuant to Article VII of Consent Order No. OCC-2025-003 | Article VII | 2025-02-15 | Thornfield qualifications package; proposed scope of engagement; CVs of Dr. Vivian Castellano, Robert Eastman, Jennifer Hwang, Nathaniel Burgess | Yes | Await OCC non-objection response | 2025-02-15 | Complete | REG-003 | Submitted in advance of February 15, 2025 independent consultant engagement deadline.
4 | 2025-02-05 | OCC | Inbound | Letter | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Philip Hartmann | Partner, Calderwood & Harkness LLP | Gregory Nardone (GC, BRB) | Non-objection to engagement of Thornfield Consulting Group LLC as independent consultant pursuant to Article VII | Article VII | None | Yes | Execute Thornfield engagement agreement; confirm engagement to OCC | 2025-02-15 | Complete | REG-004 | OCC non-objection received. Thornfield engagement agreement executed February 10, 2025 (TCG-BRB-2025-001). Fixed fee $6,500,000 + $400,000 expenses.
5 | 2025-02-10 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB) | Formal acknowledgment of Consent Order No. OCC-2025-003; confirmation of BRB's intent to comply with all provisions and deadlines; notification of C&H engagement as outside regulatory counsel | All Articles | None | No | N/A | REG-005 | Calderwood & Harkness engagement letter dated February 10, 2025. C&H Matter No. 1045-00002.
6 | 2025-02-12 | OCC | Outbound | Email | Philip Hartmann | Partner, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Yuki Nakamura (C&H); Gregory Nardone (BRB) | Confirmation of Thornfield Consulting Group engagement execution (February 10, 2025); on-site assessment to commence March 1, 2025 | Article VII | 2025-03-01 | None (engagement agreement available upon request) | No | N/A | REG-006 | Informational notification to OCC.
7 | 2025-02-20 | 10:00 AM ET | FinCEN | Bilateral | Phone Call | Philip Hartmann | Partner, Calderwood & Harkness LLP | Angela Drummond | Associate Director, Enforcement Division, FinCEN | Yuki Nakamura (C&H); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB) | Introductory call regarding FinCEN's monitoring of BRB SAR filing remediation; discussion of FinCEN's reserved enforcement rights per OCC coordination; overview of BRB remediation plan | N/A (FinCEN parallel monitoring) | None | Yes | Provide FinCEN with copy of SAR Backlog Triage Protocol once finalized; establish periodic update cadence | 2025-03-15 | Complete | REG-007 | FinCEN has not filed separate enforcement action but reserved rights. FinCEN interested in SAR filing timeliness improvement (from 78-day avg. to 30-day target) and backlog of 2,400 unreviewed alerts.
8 | 2025-02-28 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB) | Transmittal of Board Resolution adopted February 28, 2025 acknowledging Consent Order No. OCC-2025-003, establishing Compliance Committee (chaired by James Rutherford), authorizing $42,500,000 remediation budget (exclusive of $14,500,000 CMP) | Board Resolution Article | 2025-02-28 | Certified Board Resolution; Compliance Committee Charter | No | N/A | REG-008 | Met 45-day deadline from Consent Order. Total outlay including CMP: $57,000,000.
9 | 2025-03-14 | OCC | Outbound | Letter | Samantha Reeves | CFO, Belmont Ridge Financial Group, Inc. | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Philip Hartmann (C&H) | Confirmation of civil money penalty payment of $14,500,000 via wire transfer to U.S. Treasury; payment date March 14, 2025 (in advance of March 16, 2025 deadline) | CMP Article | 2025-03-16 | Wire confirmation receipt; treasury payment reference number | No | N/A | REG-009 | CMP of $14,500,000 due within 60 days of January 15, 2025 Consent Order. Non-deductible under 26 U.S.C. § 162(f).
10 | 2025-03-15 | 2:00 PM ET | FinCEN | Outbound | Email | Yuki Nakamura | Associate, Calderwood & Harkness LLP | Angela Drummond | Associate Director, Enforcement Division, FinCEN | Philip Hartmann (C&H); Thomas Ikeda (BSA Officer, BRB) | Transmittal of finalized SAR Backlog Triage Protocol per February 20, 2025 call commitment; summary of Pinnacle Compliance Solutions staffing deployment (30 FTEs commencing March 2025) | N/A (FinCEN parallel monitoring) | SAR Backlog Triage Protocol document | No | N/A | REG-010 | Pinnacle contract value: $3,600,000 (30 FTE × $10,000/mo × 12 months; SOW Ref: PCS-BRB-2025-0012).
11 | 2025-03-31 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB) | Interim SAR Backlog Status Report — progress toward dispositioning 2,400 unreviewed suspicious activity alerts; staffing deployment update; preliminary lookback findings | SAR-related Articles | 2025-03-31 | Interim SAR Backlog Status Report | Yes | Continue SAR backlog clearance toward June 30, 2025 target; provide further updates as requested | 2025-06-30 | In Progress | REG-011 | Required interim report deadline per Consent Order. SAR lookback project budget: $5,500,000. BaaS-related SARs represent 54.8% of total (2,108 of 3,847 in CY 2024).
12 | 2025-04-10 | 11:00 AM ET | OCC | Bilateral | Video Conference | Philip Hartmann | Partner, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Yuki Nakamura (C&H); Carlos Espinoza (C&H); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB); Dr. Vivian Castellano (Thornfield); Robert Eastman (Thornfield) | Thornfield Consulting preliminary gap assessment preview; discussion of initial findings across all five deficiency categories; status of Veridian TMS v.10.0 upgrade planning (Contract No. VA-BRB-2023-0044) | Article VII; All deficiency Articles | 2025-04-15 | None (oral presentation only) | Yes | Thornfield to deliver formal preliminary gap assessment report by April 15, 2025 | 2025-04-15 | Complete | REG-012 | Discussed OFAC screening gaps, model validation timeline (TMS last validated March 2021, last tuned October 2022), and CDD/EDD remediation phasing for 47,000 accounts.
13 | 2025-04-15 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Dr. Vivian Castellano (Thornfield) | Transmittal of Thornfield Consulting Group preliminary gap assessment report | Article VII | 2025-04-15 | Thornfield Preliminary Gap Assessment Report | Yes | Incorporate findings into Comprehensive Remediation Action Plan due May 15, 2025 | 2025-05-15 | Complete | REG-013 | Thornfield assessment covers all five Consent Order deficiency categories. Assessment team: Dr. Vivian Castellano, Robert Eastman, Jennifer Hwang, Nathaniel Burgess.
14 | 2025-04-25 | 3:00 PM ET | FinCEN | Bilateral | Phone Call | Philip Hartmann | Partner, Calderwood & Harkness LLP | Angela Drummond | Associate Director, Enforcement Division, FinCEN | Yuki Nakamura (C&H); Thomas Ikeda (BSA Officer, BRB) | Quarterly update on SAR backlog clearance progress and SAR filing timeliness improvements; discussion of BaaS channel SAR volumes | N/A (FinCEN parallel monitoring) | None | No | N/A | REG-014 | Reported progress on reducing 78-day average filing time. CY 2024 stats reviewed: 3,847 SARs filed; 41,500 TM alerts; 9.3% SAR conversion rate; 28,612 CTRs filed.
15 | 2025-05-15 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB); Dr. Vivian Castellano (Thornfield) | Transmittal of Comprehensive Remediation Action Plan pursuant to Consent Order No. OCC-2025-003; five workstreams: (1) OFAC sanctions screening, (2) SAR backlog/process improvement, (3) CDD/EDD remediation, (4) TM model validation, (5) governance & training | RAP Article | 2025-05-15 | Comprehensive Remediation Action Plan; RAP Executive Summary; Workstream Plans 1–5; cover letter | Yes | Await OCC acknowledgment and any comments; commence Phase 2 implementation (May 16, 2025) | 2025-06-15 | In Progress | REG-015 | End of C&H Phase 1 (estimated fees $4,800,000). Phase 2 begins May 16, 2025 (estimated fees $3,200,000). Total remediation budget $42,500,000 excl. CMP. Key milestones: SAR backlog clearance June 30; CDD/EDD 50% July 15; TMS v.10.0 UAT Aug 1; OFAC full operationalization Nov 1.
16 | 2025-06-30 | OCC | Outbound | Email | Philip Hartmann | Partner, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Yuki Nakamura (C&H); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB) | Notification of SAR backlog clearance milestone — 2,400 previously unreviewed alerts fully dispositioned as of June 30, 2025 | SAR-related Articles | 2025-06-30 | SAR Backlog Clearance Completion Certificate (BRB internal) | No | N/A | REG-016 | Target met. Pinnacle 30 FTE analysts and BRB permanent staff (62 FTE + new hires ramping) supported clearance effort.
17 | 2025-07-15 | OCC | Outbound | Email | Yuki Nakamura | Associate, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Philip Hartmann (C&H); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB) | CDD/EDD remediation 50% milestone report — 23,500 of 47,000 high-risk customer accounts remediated | CDD/EDD Articles | 2025-07-15 | CDD/EDD Progress Report | Yes | Continue toward 100% completion (47,000 accounts) by January 15, 2026 | 2026-01-15 | In Progress | REG-017 | CDD/EDD remediation budget: $4,300,000. Accounts primarily onboarded through NovaPay, FairLend Digital, VaultEdge BaaS channels.
18 | 2025-08-05 | OCC | Outbound | Email | Carlos Espinoza | Associate, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Philip Hartmann (C&H); Linda Petrosian (CIO/CTO, BRB); Priya Subramanian (Veridian Analytics) | Notification of Veridian TMS v.10.0 UAT completion and deployment as of August 1, 2025; upgrade includes enhanced OFAC screening module for all BaaS channels | TM Model / OFAC Articles | 2025-08-01 | UAT completion report; deployment certification | Yes | Schedule independent model validation; target completion by October 1, 2025 | 2025-10-01 | In Progress | REG-018 | Veridian TMS v.10.0 upgrade: $2,800,000 implementation + $1,900,000/yr incremental licensing. New ACV: $6,000,000/yr.
19 | 2025-09-15 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB); Dr. Vivian Castellano (Thornfield) | First Quarterly Progress Report — status across all five remediation workstreams; SAR backlog cleared; CDD/EDD 50% milestone achieved; TMS v.10.0 deployed; OFAC screening on track for Nov 1 full operationalization | Quarterly Reporting Article | 2025-09-15 | First Quarterly Progress Report (full report) | Yes | Await OCC feedback; prepare for second quarterly report due December 15, 2025 | 2025-12-15 | In Progress | REG-019 | Reports to Compliance Committee (James Rutherford, Chair) and Board. Metrics include SAR volumes, OFAC hit rates (CY 2024: 14,320 hits, 12 true matches, 99.9% false positive rate), CDD/EDD progress.
20 | 2025-10-01 | OCC | Outbound | Email | Philip Hartmann | Partner, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Yuki Nakamura (C&H); Dr. Vivian Castellano (Thornfield); Robert Eastman (Thornfield); Linda Petrosian (CIO/CTO, BRB) | Notification of completion of independent model validation for Veridian TMS v.10.0 by October 1, 2025; validation conducted by Thornfield Consulting Group | TM Model Validation Article | 2025-10-01 | Independent Model Validation Report | No | N/A | REG-020 | Prior validation was March 2021 (over 3 years gap). Prior tuning parameters last updated October 2022. Remediation addresses both validation and tuning deficiencies.
21 | 2025-11-03 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB); Jennifer Hwang (Thornfield); Warren Ashby (Head of BaaS, BRB) | Notification that OFAC sanctions screening is fully operational across all 14 BaaS partner channels as of November 1, 2025; 100% screening coverage achieved | OFAC Screening Article | 2025-11-01 | OFAC Remediation Testing Report; screening coverage certification | No | N/A | REG-021 | Addresses original deficiency: 12% of NovaPay transactions unscreened (approx. 3.8M of 31.7M in CY 2023). All 14 BaaS partners now covered. Total BaaS transaction volume CY 2024: $74.3B.
22 | 2025-12-15 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB); Dr. Vivian Castellano (Thornfield) | Second Quarterly Progress Report — status across all five remediation workstreams; TMS validated; OFAC screening fully operational; CDD/EDD remediation on track for 100% by January 15, 2026; training program substantially complete | Quarterly Reporting Article | 2025-12-15 | Second Quarterly Progress Report (full report) | Yes | Continue toward full compliance self-certification and Thornfield final report by February 15, 2026 | 2026-02-15 | In Progress | REG-022 | BSA/AML department headcount growing toward 77 FTEs (62 original + 15 new permanent hires). BaaS revenue CY 2024: $127.4M.
23 | 2026-01-15 | OCC | Outbound | Email | Yuki Nakamura | Associate, Calderwood & Harkness LLP | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Philip Hartmann (C&H); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB) | CDD/EDD remediation 100% milestone notification — all 47,000 high-risk customer accounts fully remediated as of January 15, 2026 | CDD/EDD Articles | 2026-01-15 | CDD/EDD Remediation Completion Report | No | N/A | REG-023 | 47,000 accounts remediated. Primarily BaaS-onboarded customers via NovaPay (41% BaaS volume), FairLend Digital (28%), VaultEdge (18%).
24 | 2026-02-15 | OCC | Outbound | Letter | Philip Hartmann | Partner, Calderwood & Harkness LLP (on behalf of BRB) | Jonathan Frey | National Bank Examiner, OCC Northeastern District Office | Gregory Nardone (GC, BRB); Diane Whitford (CEO, BRB); Patricia Langston (CCO, BRB); Thomas Ikeda (BSA Officer, BRB); Dr. Vivian Castellano (Thornfield) | Full compliance self-certification pursuant to Consent Order No. OCC-2025-003; transmittal of Thornfield Consulting Group final validation report confirming complete remediation of all five deficiency categories | Self-Certification Article; Article VII | 2026-02-15 | Compliance Self-Certification; Thornfield Final Validation Report | Yes | Await OCC acknowledgment and determination regarding Consent Order termination/modification | Open | REG-024 | End of 12-month Thornfield engagement (TCG-BRB-2025-001). End of C&H Phase 2. Total C&H estimated fees: $8,000,000. Total remediation outlay (incl. CMP): $57,000,000.
[sheet: Follow-Up Tracker]
Entry No. | Date of Communication | Regulator | Subject Summary | Follow-Up Description | Follow-Up Due Date | Responsible Person | Follow-Up Status | Days Until Due | Overdue Flag | Notes / Resolution
1 | 2025-01-15 | OCC | Consent Order OCC-2025-003 issued | Board Resolution due within 45 days (Feb 28, 2025); CMP $14.5M due within 60 days (March 16, 2025); independent consultant engagement within 30 days | 2025-02-28 | Philip Hartmann / Gregory Nardone | Complete | 0 | No | Board Resolution adopted Feb 28; CMP paid March 14; Thornfield engaged Feb 10.
3 | 2025-01-31 | OCC | Proposed independent consultant — Thornfield; seeking OCC non-objection | Await OCC non-objection response | 2025-02-15 | Philip Hartmann | Complete | 0 | No | Non-objection received February 5, 2025 (Entry 4).
4 | 2025-02-05 | OCC | OCC non-objection to Thornfield engagement | Execute Thornfield engagement agreement; confirm engagement to OCC | 2025-02-15 | Philip Hartmann / Gregory Nardone | Complete | 0 | No | Thornfield engagement agreement executed February 10, 2025. Confirmed to OCC via email February 12, 2025 (Entry 6).
7 | 2025-02-20 | FinCEN | Introductory call with Angela Drummond — SAR remediation monitoring | Provide finalized SAR Backlog Triage Protocol to FinCEN | 2025-03-15 | Yuki Nakamura / Thomas Ikeda | Complete | 0 | No | Protocol transmitted via email March 15, 2025 (Entry 10).
11 | 2025-03-31 | OCC | Interim SAR Backlog Status Report submitted | Continue SAR backlog clearance toward June 30, 2025 target; provide further updates as requested | 2025-06-30 | Thomas Ikeda / Yuki Nakamura | Complete | 0 | No | SAR backlog fully cleared June 30, 2025 (Entry 16).
12 | 2025-04-10 | OCC | Thornfield preliminary gap assessment preview (video conference) | Thornfield to deliver formal preliminary gap assessment report by April 15, 2025 | 2025-04-15 | Dr. Vivian Castellano / Philip Hartmann | Complete | 0 | No | Report transmitted April 15, 2025 (Entry 13).
13 | 2025-04-15 | OCC | Thornfield preliminary gap assessment report transmitted | Incorporate findings into Comprehensive Remediation Action Plan due May 15, 2025 | 2025-05-15 | Philip Hartmann / Patricia Langston | Complete | 0 | No | RAP submitted May 15, 2025 (Entry 15).
15 | 2025-05-15 | OCC | Comprehensive Remediation Action Plan submitted | Await OCC acknowledgment and comments; commence Phase 2 implementation | 2025-06-15 | Philip Hartmann | In Progress | 0 | No | Phase 2 commenced May 16, 2025.
17 | 2025-07-15 | OCC | CDD/EDD 50% milestone — 23,500 accounts remediated | Continue toward 100% completion (47,000 accounts) by January 15, 2026 | 2026-01-15 | Patricia Langston / Thomas Ikeda | In Progress | 0 | No | 100% milestone achieved January 15, 2026 (Entry 23).
18 | 2025-08-05 | OCC | Veridian TMS v.10.0 deployed | Independent model validation by October 1, 2025 | 2025-10-01 | Dr. Vivian Castellano / Linda Petrosian | Complete | 0 | No | Validation completed October 1, 2025 (Entry 20).
19 | 2025-09-15 | OCC | First Quarterly Progress Report submitted | Await OCC feedback; prepare for second quarterly report due December 15, 2025 | 2025-12-15 | Philip Hartmann / Yuki Nakamura | Complete | 0 | No | Second Quarterly Progress Report submitted December 15, 2025 (Entry 22).
22 | 2025-12-15 | OCC | Second Quarterly Progress Report submitted | Full compliance self-certification and Thornfield final report by February 15, 2026 | 2026-02-15 | Philip Hartmann / Dr. Vivian Castellano | In Progress | 0 | No | Self-certification submitted February 15, 2026 (Entry 24).
24 | 2026-02-15 | OCC | Self-certification and Thornfield final report submitted | Await OCC acknowledgment and determination regarding Consent Order termination/modification | Philip Hartmann / Gregory Nardone | Open | No
[sheet: Key Deadlines Reference]
Deadline Date | Description | Consent Order Article | Responsible Party at BRB | C&H Lead | Status | Correspondence Log Entry No. | Notes
2025-01-15 | Consent Order No. OCC-2025-003 effective date | All | Diane Whitford (CEO) | Philip Hartmann | Met | 1 | Consent Order issued and received.
2025-02-05 | OCC non-objection to Thornfield as independent consultant | Article VII | Gregory Nardone (GC) | Philip Hartmann | Met | 4 | Non-objection received February 5, 2025.
2025-02-10 | C&H engagement opens; Thornfield engagement executed | N/A | Gregory Nardone (GC) | Philip Hartmann | Met | 5 | C&H Matter No. 1045-00002; Thornfield Ref: TCG-BRB-2025-001.
2025-02-28 | Board Resolution — acknowledge Consent Order; establish Compliance Committee | Board Resolution Article | Diane Whitford (Board Chair); James Rutherford (Compliance Committee Chair) | Philip Hartmann | Met | 8 | Resolution adopted; Compliance Committee established; $42.5M budget authorized.
2025-03-01 | Thornfield on-site assessment commences | Article VII | Patricia Langston (CCO) | Philip Hartmann | Met | 6 | Team: Dr. Vivian Castellano, Robert Eastman, Jennifer Hwang, Nathaniel Burgess.
2025-03-16 | CMP payment of $14,500,000 due (60 days from Consent Order) | CMP Article | Samantha Reeves (CFO) | Philip Hartmann | Met | 9 | Paid March 14, 2025 — two days early.
2025-03-31 | Interim SAR backlog status report due to OCC | SAR Articles | Thomas Ikeda (BSA Officer) | Philip Hartmann / Yuki Nakamura | Met | 11 | 2,400 alert backlog — interim progress reported.
2025-04-15 | Thornfield preliminary gap assessment due | Article VII | Dr. Vivian Castellano (Thornfield) | Philip Hartmann | Met | 13 | Transmitted to OCC April 15, 2025.
2025-05-15 | Comprehensive Remediation Action Plan due to OCC | RAP Article | Patricia Langston (CCO); Thomas Ikeda (BSA Officer) | Philip Hartmann | Met | 15 | End of C&H Phase 1 ($4.8M estimated fees).
2025-06-30 | SAR backlog clearance target (2,400 alerts fully dispositioned) | SAR Articles | Thomas Ikeda (BSA Officer) | Yuki Nakamura | Met | 16 | Cleared with Pinnacle support (30 FTEs).
2025-07-15 | CDD/EDD 50% remediation milestone (23,500 of 47,000 accounts) | CDD/EDD Articles | Patricia Langston (CCO) | Yuki Nakamura | Met | 17 | Budget: $4.3M.
2025-08-01 | Veridian TMS v.10.0 UAT complete and deployed | TM Model Articles | Linda Petrosian (CIO/CTO) | Carlos Espinoza | Met | 18 | Implementation cost: $2.8M; new ACV: $6.0M/yr.
2025-09-15 | First quarterly progress report to OCC | Quarterly Reporting Article | Patricia Langston (CCO) | Philip Hartmann | Met | 19 | Comprehensive report across all 5 workstreams.
2025-10-01 | Independent model validation of upgraded TMS complete | TM Model Articles | Dr. Vivian Castellano (Thornfield); Linda Petrosian (CIO/CTO) | Philip Hartmann | Met | 20 | Prior validation gap: March 2021 to October 2025 (>4 years).
2025-11-01 | OFAC screening fully operational for all BaaS channels | OFAC Articles | Warren Ashby (Head BaaS); Thomas Ikeda (BSA Officer) | Philip Hartmann | Met | 21 | 100% screening coverage across all 14 BaaS partners.
2025-12-15 | Second quarterly progress report to OCC | Quarterly Reporting Article | Patricia Langston (CCO) | Philip Hartmann | Met | 22
2026-01-15 | CDD/EDD 100% remediation milestone (47,000 accounts) | CDD/EDD Articles | Patricia Langston (CCO); Thomas Ikeda (BSA Officer) | Yuki Nakamura | Met | 23 | All 47,000 accounts remediated.
2026-02-15 | Full compliance implementation; Thornfield final report; self-certification due | Self-Certification Article; Article VII | Diane Whitford (CEO); Gregory Nardone (GC); Patricia Langston (CCO) | Philip Hartmann | Pending | 24 | End of 12-month Thornfield engagement and C&H Phase 2.
[sheet: Contact Directory]
Name | Title | Organization | Role in Matter | Address | Email | Phone | Notes
Jonathan Frey | National Bank Examiner / Examiner-in-Charge | OCC — Northeastern District Office | Primary OCC contact; all formal correspondence addressed to him | 340 Madison Avenue, New York, NY 10017 | [on file] | [on file] | Oversaw targeted BSA/AML examination March–September 2024.
Angela Drummond | Associate Director, Enforcement Division | FinCEN | FinCEN liaison monitoring BRB SAR filing remediation; reserved enforcement rights | [FinCEN address] | [on file] | [on file] | No separate FinCEN enforcement action as of engagement date.
Philip Hartmann | Responsible Partner, Banking & Finance | Calderwood & Harkness LLP | Lead C&H partner; primary signatory on OCC/FinCEN correspondence | 1285 Avenue of the Americas, 40th Floor, New York, NY 10019 | [on file] | [on file] | Billing rate: $1,450/hr.
Yuki Nakamura | Lead Associate, Litigation (General) | Calderwood & Harkness LLP | Day-to-day C&H contact for regulatory correspondence | 1285 Avenue of the Americas, 40th Floor, New York, NY 10019 | [on file] | [on file] | Billing rate: $895/hr.
Carlos Espinoza | Working Associate, Litigation (General) | Calderwood & Harkness LLP | C&H support; technology vendor correspondence | 1285 Avenue of the Americas, 40th Floor, New York, NY 10019 | [on file] | [on file] | Billing rate: $725/hr.
Marcus Delgado | Billing Partner, intellectual Property | Calderwood & Harkness LLP | Cross-staffed for fintech patent/licensing compliance overlap in BaaS arrangements | 1285 Avenue of the Americas, 40th Floor, New York, NY 10019 | [on file] | [on file] | Billing rate: $1,350/hr.
Gregory Nardone | General Counsel & Corporate Secretary | Belmont Ridge Bank NA / BRFG | Primary BRB legal contact; co-signatory on regulatory filings | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file] | Fee overruns above $9,200,000 require his written approval.
Patricia Langston | Chief Compliance Officer | Belmont Ridge Bank NA | BRB CCO; appointed January 2024; key contact for Thornfield and OCC | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file] | Predecessor CCO terminated.
Thomas Ikeda | BSA Officer / AML Program Director | Belmont Ridge Bank NA | BRB BSA Officer; appointed March 2023; leads BSA/AML department (62 FTE, growing to 77) | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file]
Diane Whitford | CEO & Board Chair | BRB / BRFG | Signatory on self-certification and Board-level submissions | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file]
Samantha Reeves | CFO | BRB / BRFG | CMP payment authorization and financial reporting | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file]
Dr. Vivian Castellano | Managing Director, Financial Crimes Advisory | Thornfield Consulting Group LLC | Independent consultant engagement lead (TCG-BRB-2025-001) | 200 Park Avenue South, 15th Floor, New York, NY 10003 | [on file] | [on file] | Thornfield fixed fee: $6.5M; expenses capped at $400K.
Robert Eastman | Senior Director, AML Transaction Monitoring | Thornfield Consulting Group LLC | TM model validation and monitoring workstream | 200 Park Avenue South, 15th Floor, New York, NY 10003 | [on file] | [on file]
Jennifer Hwang | Director, Sanctions & OFAC Compliance | Thornfield Consulting Group LLC | OFAC screening workstream | 200 Park Avenue South, 15th Floor, New York, NY 10003 | [on file] | [on file]
Nathaniel Burgess | Director, Fintech & Payments Compliance | Thornfield Consulting Group LLC | BaaS/fintech compliance workstream | 200 Park Avenue South, 15th Floor, New York, NY 10003 | [on file] | [on file]
Warren Ashby | Head of Fintech Partnerships / BaaS Division | Belmont Ridge Bank NA | BaaS oversight; 14 active fintech partners | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file] | BaaS revenue CY 2024: $127.4M; transaction volume: $74.3B.
Linda Petrosian | CIO / CTO | Belmont Ridge Bank NA | Technology implementation; Veridian TMS upgrade | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file] | Veridian Contract No. VA-BRB-2023-0044.
Melissa Chu | Chief Risk Officer | Belmont Ridge Bank NA | Enterprise risk oversight | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file]
Derek Ballard | Head of Internal Audit | Belmont Ridge Bank NA | Internal audit of BSA/AML program | 680 Lexington Avenue, 22nd Floor, New York, NY 10022 | [on file] | [on file]