Crypto Bank flagged by OCC for bypassing AML

Cryptocurrency lender Anchorage Digital Bank failed to comply with anti-money laundering (AML) mandates and violated rules for monitoring suspicious activity, according to a statement of the Office of the Comptroller of the Currency (OCC).

the CCO said the flagship crypto bank, which was granted a conditional charter in January 2021, has not adopted a compliance program that complies with the Bank Secrecy Act and AML protocols, the OCC said in its consent order. The bank’s compliance program also lacked the staff and internal processes to verify customers. Anchorage Digital, which neither admitted nor denied the OCC’s findings, agreed to correct the issues.

Read more: OCC Grants Conditional Digital Banking License to Anchorage Firm Crypto

When the OCC conditionally approved Anchorage’s charter, the crypto bank agreed to comply with certain capital and liquidity requirements as well as OCC risk management rules. Having a federally chartered bank takes precedence over state regulations.

Based in Sioux Falls, SD and co-founded in 2017 by CEO and Board Member Nathan McCauley and Chairman and Board Member Diogo Moniquethe startup aims to facilitate the secure buying and selling of digital assets integrated with custody.

Among the OCC’s orders, Anchorage must appoint a compliance committee within 15 days and submit a progress report and remediation plan. Anchorage has begun corrective action and is committed to remedying it, the order said.

“The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional or new business,” Acting Comptroller of the Currency Michael Hsu said in a statement. “When institutions fail, we will take action and hold them accountable to ensure compliance with federal laws and regulations.”

You can also take advantage of: FDIC-supervised institutions will be required to report crypto-related activity

The Federal Deposit Insurance Corporation (FDIC) said earlier this month that all institutions under its oversight must notify if they engage or intend to engage in any activity involving or related to crypto assets. According to the FDIC, each crypto-related activity must be assessed on an individual basis to ensure consumer safety and security.



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