Federal Reserve Takes Action Against Customers Bank
Enforcement Action Cites Alleged Misrepresentations
Bank Agrees to Enhanced Monitoring
The Federal Reserve Board has taken enforcement action against Customers Bank, alleging that the bank misrepresented its compliance with anti-money laundering laws.
In a press release, the Fed said that Customers Bank had "failed to adequately implement and maintain an effective anti-money laundering compliance program." The Fed also said that the bank had "failed to timely file suspicious activity reports (SARs) on transactions involving certain customers.
As part of the enforcement action, Customers Bank has agreed to enhanced monitoring by the Fed. The bank will also be required to retain an independent consultant to review its anti-money laundering program.
Customers Bank, which is based in Philadelphia, has been a vocal supporter of the cryptocurrency industry. In 2019, the bank launched a new unit called "C2FO Crypto Services" to provide banking services to cryptocurrency companies.
The Fed's enforcement action against Customers Bank is the latest sign that regulators are taking a closer look at the cryptocurrency industry. In recent months, the Securities and Exchange Commission (SEC) has cracked down on several cryptocurrency exchanges, and the Financial Crimes Enforcement Network (FinCEN) has issued new guidance on how banks should handle cryptocurrency transactions.
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