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 Fed said it had 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 order did not outline how the bank had not complied with regulations concerning its crypto clients.

The Fed added that United Texas Bank had since taken further measures to strengthen its adherence to the Bank Secrecy Act (BAS) and its Anti-Money Laundering (AML) program. The order noted that the bank's board of directors had agreed to submit a formal plan to "strengthen board oversight" of its compliance with BSA/AML requirements.

Source: https://cointelegraph.com/news/united-texas-bank-cease-and-desist-order-crypto-firms

The information provided in this article is for informational and educational purposes only, based on news and sources gathered from the internet. This content should not be considered as investment advice, financial guidance, or a suggestion to buy or sell any digital assets. Before making any financial decisions, we recommend consulting with a professional financial advisor and conducting your own research. The author and the blog are not responsible for any losses or damages that may arise from using this content.