The Federal Reserve issued a statement highlighting serious violations by Customers Bank in complying with anti-money laundering regulations and adhering to the “Bank Secrecy Act.” This statement is part of the Federal Reserve’s ongoing efforts to monitor financial institutions involved with cryptocurrencies and underscores the increased scrutiny on such banks.
According to the Federal Reserve, the bank exhibited significant deficiencies in complying with regulatory requirements and risk management, which could have jeopardized the financial system and facilitated illegal activities. As a result, the Federal Reserve decided to impose enforcement measures on the bank’s parent company, Customers Bancorp.
In response, Customers Bancorp entered into an agreement with the regulator, committing to provide an updated and more stringent client verification procedure within ten days. Additionally, the company agreed to implement all necessary AML programs as required by U.S. law and to strengthen internal controls to ensure compliance with these measures. This move highlights the bank’s willingness to cooperate with the regulator and take all necessary actions to address the identified violations.
Nevertheless, the incident with Customers Bank raises questions about the extent to which banks involved with cryptocurrencies are adhering to legal requirements, and it may serve as a warning to other financial institutions to tighten their internal procedures.
