The U.S. Federal Reserve is hitting a Texas financial institution with a crypto-related stop and desist order, alleging that it violated a number of nationwide legal guidelines.
In keeping with latest court documents, the Federal Reserve discovered that United Texas Financial institution had “vital deficiencies” in its company oversight, governance, and anti-money laundering (AML) protocols after launching an investigation into the agency.
The Fed’s probe uncovered that the financial institution allegedly violated a number of legal guidelines when it got here to digital belongings, together with the Banks Secrecy Act and the foundations and laws set forth by the U.S. Division of the Treasury in addition to the Federal Reserve itself.
“The examination recognized vital deficiencies associated to international correspondent banking and digital foreign money clients, particularly danger administration and compliance with relevant legal guidelines, guidelines, and laws referring to anti-money laundering.”
To repair the AML subject, the regulator is mandating the financial institution create a “a system of inside controls fairly designed to make sure ongoing compliance with the BSA/AML necessities” that’s managed by a certified compliance officer who would have full autonomy and accountability.
The Fed can also be requiring the financial institution to submit a suitable revised buyer due diligence program in addition to a written company governance program that might define how the financial institution plans to unravel its structural, staffing, and administration wants.
Nevertheless, the order mentions the financial institution didn’t admit or deny any wrongdoing.
“With out admitting or denying any prices of unsafe and unsound banking practices, or violation of relevant Texas legislation, the Financial institution consents to deeming this Order to be a consent order for the needs of Texas legislation.”
Final month, the Federal Reserve issued an enforcement motion towards Prospects Bancorp, a Pennsylvania-based financial institution, for comparable causes.
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