US Fed Targets Crypto-Friendly Texas Bank with Cease-and-Desist Action
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The Federal Reserve issued a cease-and-desist order to crypto-friendly United Texas Bank in Dallas on Wednesday. This action targets “significant deficiencies” in the bank’s compliance with anti-money laundering regulations related to its crypto clients.
The bank’s management agreed to the order to avoid formal proceedings. Now, they are required to submit a detailed five-part action plan within 90 days to achieve AML compliance. This plan includes ensuring proper staffing and regularly reviewing staffing needs.
In the order, the Fed identified issues in governance, customer due diligence and monitoring suspicious activities, especially in the bank’s crypto transactions. This indicates that while United Texas Bank aimed to support virtual asset businesses, its compliance and risk management in the sector failed to meet the Federal Reserve’s standards.
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