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 issued a cease and desist order to the crypto-friendly United Texas Bank, citing “significant deficiencies” in the bank’s risk management systems and dealings with 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,” the Fed wrote in its order.
