Federal Reserve System, which oversees the Federal Reserve System, has taken enforcement action against Customers Bancorp. This is the parent company to Customers Bank in the state of New York. Customers Bank is known for its business dealings with stablecoin and crypto exchange platforms.
Federal Reserve Board (FRB), a federal agency, has said that the Pennsylvania bank holding company’s subsidiary and other practices in relation to anti-money-laundering laws and risk management are lacking.
Bancorp and Customers Bank have already taken action in order to correct the deficiencies identified with their Anti-Money Laundering Act compliance (AMLA) as well as Bank Secrecy Act compliance (BSA).
Bancorp and Customers Bank must still submit a plan within 60 days for improving their risk management practice related to the digital asset strategy, which includes offering banking services to cryptocurrency customers.
Plan the steps that will be taken to make sure that people in charge of digital assets have the appropriate authority, expertise, resources and staffing.
The strategy should include the measures that enable the timely evaluation and reporting of the risk exposure related to the digital assets.
Bancorp shares dropped by 13.31% on today. The price of Bancorp’s shares fell by 13.31% today.
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As new information becomes available, this post U.S. Federal Reserve Hits Customers Bank with Enforcement Action Relating to Crypto Services might be updated.
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