Reserve

Bank

2024

Standard

<p class="is-style-lead">The Federal Reserve has imposed strict oversight and compliance measures on Customers Bancorp, Inc., and its subsidiary, Customers Bank.</p>
<p>The action follows a recent examination by the Federal Reserve Bank of Philadelphia, which uncovered significant deficiencies in the bank’s risk management and compliance practices, particularly in relation to anti-money laundering laws and the Bank Secrecy Act.</p>
<p>“Customers was one of the biggest pro crypto banks out there. Fed and FDIC are systematically dismantling all crypto-friendly banks one after the next,” <a href="https://x.com/nic__carter/status/1821567272432836943" target="_blank" rel="noopener noreferrer nofollow">posted</a> author Nic Carter on X, expressing concern over the news.</p>
<p>The <a href="https://crypto.news/tag/Federal-Reserve/" target="_blank" data-type="link" data-id="https://crypto.news/tag/Federal-Reserve/" rel="noopener noreferrer nofollow">Federal Reserve</a> believes that the bank’s board of directors should enhance their oversight and resources to manage these high-risk activities. A key focus of the scrutiny is on the bank’s digital asset strategy and instant payments platform.&nbsp;</p>
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   <p lang="en" dir="ltr">As I noted before, U.S. banks are quietly de-platforming businesses that have anything to do with crypto. Operation chokepoint 2.0. is back. Bank regulators are quietly threatening bank CEOs and CCOs to shut down crypto companies and activities. <a href="https://t.co/ykFWHLNQAt" target="_blank" rel="noopener noreferrer nofollow">https://t.co/ykFWHLNQAt</a></p>— Gabor Gurbacs (@gaborgurbacs) <a href="https://twitter.com/gaborgurbacs/status/1821576646903898242?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 8, 2024</a>
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<p>This announcement has sparked outrage in the crypto community, with accusations against the Federal Reserve and <a href="https://crypto.news/tag/FDIC/" target="_blank" data-type="link" data-id="https://crypto.news/tag/FDIC/" rel="noopener noreferrer nofollow">FDIC</a> for gradually suffocating crypto businesses.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/do-kwon-extradition-halted-by-montenegro-supreme-court-ruling/" rel="noopener noreferrer nofollow"> Do Kwon extradition halted by Montenegro Supreme Court ruling </a></p>
<h2 class="wp-block-heading" id="agreement-between-the-fed-and-customers-bancorp">Agreement between the Fed and Customers Bancorp</h2>
<p>Per the written <a href="https://www.federalreserve.gov/newsevents/pressreleases/files/enf20240808a1.pdf" target="_blank" data-type="link" data-id="https://www.federalreserve.gov/newsevents/pressreleases/files/enf20240808a1.pdf" rel="noopener noreferrer nofollow">agreement</a>, Customers Bancorp and Customers Bank are to submit detailed plans within 60 days to address these deficiencies.&nbsp;</p>
<p>These plans must outline steps to strengthen board oversight, improve risk management, and enhance compliance with requirements and the Office of Foreign Assets Control regulations.&nbsp;</p>
<p>Additionally, the bank must revise its customer due diligence and suspicious activity monitoring programs. The agreement also stipulates regular progress reports to ensure adherence to the new compliance measures.&nbsp;</p>
<p>Customers Bancorp and Customers Bank both agreed to these terms as part of their commitment to improving their compliance posture and regulatory confidence.</p>
<p>You might also like: <a href="https://crypto.news/why-is-donald-trump-calling-on-the-government-not-to-sell-bitcoin/" rel="noopener noreferrer nofollow"> Standard Chartered-incubated digital bank Mox Bank debuts crypto ETFs for retail investors </a></p>

Federal Reserve cracks down on crypto-friendly Customer Bancorp

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