Crypto-friendly banks such as United Texas Bank often face regulatory hurdles. Recently, the Federal Reserve issued a cease-and-desist order to the bank over non-compliance with Anti-Money Laundering (AML) regulations.
AML Compliance Control
The Federal Reserve issued a cease-and-desist order requiring the bank to halt operations. Additionally, the order was agreed upon by United Texas Bank, which proposed a 90-day period to devise a compliance-strengthening plan.
United Texas Bank's Action Plan
The order requires United Texas Bank to detail measures to prevent non-compliance with the Bank Secretary Act (BSA) and AML regulations. The FED has not specified how the bank violated AML regulations, but the bank has 60 days to submit a corporate governance plan.
US Regulatory Landscape in 2024
The US crypto regulatory landscape has become highly active. Leading regulators such as the FED and SEC have focused on digital assets, creating challenging conditions for crypto institutions. Presently, the SEC is tackling cases against Ripple and Coinbase over regulatory compliance.
The regulation of crypto banks and their compliance with AML standards remains critical for financial stability. Ongoing interactions between United Texas Bank and regulators will be key in resolving these issues.
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