Sterling Bank and Trust faced severe regulatory enforcement actions, compliance penalties, and supervisory scrutiny regarding deficiencies in its Bank Secrecy Act and anti-money laundering compliance programs, as well as questionable residential mortgage loan underwriting practices. Federal regulators, including the Office of the Comptroller of the Currency, issued stringent cease-and-desist orders, levied civil money penalties, and mandated sweeping corrective measures. These regulatory pressures forced the bank to overhaul its internal risk controls, replace executive management, and scale back certain lending portfolios to satisfy federal compliance standards.