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According to an article published by Reuters, The U.S. Federal Reserve stated on Thursday that it has opened a new tab in response to "significant deficiencies" in Customers Bancorp's (CUBI.N) risk-management and anti-money-laundering procedures.
Following the Fed's announcement, the bank's shares dropped more than 20%, but it later recovered to settle 13.3% down at $47.01 on Thursday. The enforcement action aimed at the Pennsylvania-based bank, which offers tokenized rapid payments and digital asset services, resulted from a recent Federal Reserve investigation, according to the central bank.
Joan Cheney, chief risk officer of Customers Bancorp, stated in a statement that the bank is dedicated to fulfilling all of its regulatory responsibilities, including those outlined in the recently disclosed actions.
"We have already begun taking a number of significant steps to strengthen our risk management practices and BSA/AML compliance program," she stated.
The term "BSA" refers to a group of laws and rules that were passed in the US with the intention of preventing the funding of terrorism and money laundering.
The enforcement action doesn't include a fee; instead, it requires the bank to revise its policies in order to fix any flaws that are found and to provide periodic updates to regulators on its progress. The directive explicitly instructs the bank to completely restructure its risk management in relation to its digital assets business. This includes making sure that personnel have the required training and resources and acting swiftly to address any risk exposures that arise from that company.
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