Anchorage Digital Failed Anti-Money Laundering Rules
2022.04.22 14:46
Anchorage Digital Failed Anti-Money Laundering Rules
Anchorage Digital Bank failed to comply with the Anti-Money Laundering (AML) rules, reported to the United States Office of the Comptroller of the Currency (OCC). Anchorage Digital is the first licensed United States cryptocurrency bank and one of the major cryptocurrency lenders. The company aims to become the premier digital asset platform for institutions.
On Thursday the authority issued a “cease and desist”-type of Consent Order against Anchorage Digital for engaging in violations of law and regulation after the bank failed to adopt critical rules to prevent money laundering and report suspicious transactions.
According to the order, the cryptocurrency bank’s AML compliance program was not providing proper internal customer verification processes and lacked the personnel to complete these tasks.
“The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional or novel activities,” said the Acting Comptroller of the Currency Michael J. Hsu.
The consent Order obliges Anchorage Digital to set a Compliance Committee within the 15 days, which would effective immediately detail the actions necessary to achieve compliance with AML regulations.
As the OCC document further states, both parties have reached an agreement. Reportedly, Anchorage has already initiated corrective actions and “is committed to taking all necessary and started Crypto bank said to have started all necessary and appropriate steps to remedy the deficiencies identified by the OCC.”
The previous Anchorage Trust Company was granted the OCC approval to become Anchorage Digital Bank in January 2021. Under the operating agreement, Anchorage Digital is obliged to comply with Bank Secrecy Act /Anti-money Laundering (BSA/AML) requirements.
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