Regulatory Crackdown on United Texas Bank for AML Lapses Involving Crypto Customers

United Texas Bank has been issued a cease and desist order by the U.S. Federal Reserve and the Texas Department of Banking for failing to meet anti-money laundering (AML) and Bank Secrecy Act (BSA) requirements, particularly in its oversight of virtual currency and foreign correspondent banking customers.

The bank must take immediate corrective actions, including improving corporate governance, strengthening compliance oversight, and revising customer due diligence procedures. The order mandates a written plan within 90 days and regular progress reports to avoid further penalties. This action has sparked discussions within the crypto community regarding regulatory enforcement.

Clever Robot News Desk 5^th September 2024