Fed Ends Enforcement Action Against Crypto-Facing United Texas Bank
The Federal Reserve has terminated its enforcement action against United Texas Bank, ending nearly two years of regulatory scrutiny over the bank's anti-money laundering controls for virtual currency clients.
The enforcement action was sparked by a May 2023 examination that identified significant deficiencies in the bank's corporate governance and oversight, particularly with regards to risk management and compliance with anti-money laundering rules under the Bank Secrecy Act.
Under a consent order issued in August 2024, United Texas Bank was required to strengthen its board oversight, overhaul its BSA/AML compliance program, revise customer due diligence, and improve suspicious activity monitoring.
The termination of the enforcement action indicates that United Texas Bank has satisfied these requirements, and marks the latest sign that US regulators are easing compliance pressure on banks serving crypto businesses.