In May 2023, the Texas Department of Banking investigated Dallas-based United Texas Bank and found that the bank's board of directors and management had engaged in fraudulent conduct.
The Fed said in its cease and desist order that it had found significant deficiencies in the bank's foreign correspondent banking operations and cryptocurrency client services.
Identifying material deficiencies with respect to customers, specifically with respect to risk management and compliance with applicable laws and regulations related to anti-money laundering (AML), such as the Bank Secrecy Act (BSA)
United Texas Bank has already complied with this order and has taken steps to strengthen its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) program.
The bank's board of directors also recommended "ways to strengthen oversight of compliance with BSA/AML requirements" and "plans for improving its customer due diligence program."
" and other documents must be submitted in writing. United Texas Bank has previously partnered with the Stellar Foundation and Circle Inc. This is the result of a transaction with MoneyGram, a remittance service company, in 2021.
This is related to the company's partnership with Stellar in 2019, which allows users to convert payments in virtual currencies such as the stablecoin USDC into fiat currency and receive them.
At the time, United Texas Bank acted as an intermediary between Circle and the company in trading virtual currency and fiat currency through MoneyGram.
Dan Spaher of the Blockchain Association, a cryptocurrency industry group, criticized the Fed's latest crackdown as part of Choke Point 2.0.
"Choke Point 2.0" is a term used by some in the cryptocurrency community to describe the federal government's efforts to exclude the cryptocurrency industry from the banking sector.
The word is used to express suspicion that the flow is narrow. "Choke point" originally meant a difficult place where the flow becomes narrow.
In particular, three crypto-friendly US banks in 2023 (Silicon Valley Bank, Silverstone,
Some have speculated that the Biden administration intended to force the cryptocurrency industry out of the U.S. banking system when other banks, such as PayPal, PayPal, and Signature Bank, went bankrupt.
On August 5, the Fed also ordered Customer Bankcorp, which provided banking services to major cryptocurrency companies such as Coinbase, Kraken, and Circle, to withdraw its BSA
The Fed said it must notify the bank 30 days in advance when it launches new cryptocurrency-related services, but also ordered it to strengthen its oversight.
2024/09/06 10:41 KST
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