A regulatory remediation plan is a documented programme in which a financial firm sets out how it will correct weaknesses that a supervisor has identified, for example after an inspection, a thematic review or a self-reported breach. It lists each finding, the root cause, the corrective action, a named owner, a deadline and the evidence that will show the fix is working. Plans are often required by a regulatory consent order or another enforcement action, but many are agreed informally as part of regulatory examination management.
The board usually approves the plan and receives regular progress reports, and the regulator is updated at agreed intervals. Actions are not treated as closed until they have been independently checked, typically through regulatory compliance testing, internal audit or an outside reviewer such as an independent AML review. Missed deadlines or superficial fixes can lead to heavier penalties or business restrictions.