The Federal Reserve demands crypto-friendly bank Customers Bank to limit risks for cryptocurrency clients

PANews reported on August 9th that according to CoinDesk, the Federal Reserve has taken enforcement action against crypto-friendly bank Customers Bank for failing to properly manage risks associated with its crypto clients. In an enforcement agreement signed by executives of Customers Bank, the Fed pointed out "significant deficiencies in risk management practices and compliance with applicable laws, regulations and ordinances related to anti-money laundering" at the bank. According to this order, Customers Bank must promptly provide a series of written plans and new compliance methods to the Fed, including an agreement "to ensure that the bank collects, analyzes and retains complete accurate information for all customers". The bank must notify the Fed 30 days in advance of "any new strategic initiatives, products or services related to digital asset strategy or relationships with third parties." Notably, customers of Customers Bank include well-known crypto companies such as Galaxy Digital, Coinbase and Circle. As previously reported, U.S. banking regulators including the Federal Reserve, Office of Comptroller Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) have issued guidance aimed at limiting banks' exposure to cryptocurrency industry.