Fed Issues Warning to Pennsylvania Bank Over Crypto Oversight Deficiencies
CryptoNewsTerminal Staff08 Aug, 2024
Fed Issues Warning to Pennsylvania Bank Over Crypto Oversight Deficiencies
The Federal Reserve has issued a warning to Pennsylvania-based Customers Bank regarding deficiencies in its oversight of crypto clients' illicit activities, according to CoinDesk. The Fed found that the bank had "significant deficiencies" in its risk management practices and compliance with anti-money laundering (AML) laws, rules, and regulations. As part of the order, the bank must submit a series of written plans and compliance-related filings. It must also provide the Fed with 30 days' notice before launching any new crypto-related strategic initiatives, products, or services, or entering into any partnerships. The bank must also collect, analyze, and retain information on all of its customers with a focus on crypto related activity. Key customers of Customers Bank include Coinbase, Circle, and Galaxy Digital. The Fed's warning is a reminder of the importance of strong AML compliance for banks that deal with crypto clients. Banks must have robust risk management systems in place to identify and mitigate the risks of money laundering and other illicit activities. They must also be able to demonstrate that they are complying with all applicable laws and regulations. ```
