Fed hits Texas bank with cease and desist over servicing crypto firms
The US Federal Reserve said it identified “significant deficiencies” in the bank’s dealings with crypto clients and its risk management procedures.
The United States Federal Reserve has slapped the crypto-friendly United Texas Bank with a cease and desist order citing “significant deficiencies” in the bank’s risk management systems and its dealings with its crypto clients.
In a Sept. 4 cease and desist order, the Fed said it had examined United Texas Bank in May and found issues with its corporate governance structure and “oversights” by the bank’s board of directors and senior management.
“The Examination identified significant deficiencies related to foreign correspondent banking and virtual currency customers, specifically risk management and compliance with applicable laws, rules, and regulations relating to anti-money laundering including the Bank Secrecy Act,” wrote the Fed in its order.
The US Federal Reserve said it identified “significant deficiencies” in the bank’s dealings with crypto clients and its risk management procedures.
The United States Federal Reserve has slapped the crypto-friendly United Texas Bank with a cease and desist order citing “significant deficiencies” in the bank’s risk management systems and its dealings with its crypto clients.In a Sept. 4 cease and desist order, the Fed said it had examined United Texas Bank in May and found issues with its corporate governance structure and “oversights” by the bank’s board of directors and senior management. “The Examination identified significant deficiencies related to foreign correspondent banking and virtual currency customers, specifically risk management and compliance with applicable laws, rules, and regulations relating to anti-money laundering including the Bank Secrecy Act,” wrote the Fed in its order. Read more