The audit found gaps in risk management at United Texas Bank, particularly in its handling of digital asset clients.
The Texas Federal Reserve has expressed concern about non-compliance with anti-money laundering (AML) laws, breaches of general security principles, and their impact on the U.S. financial ecosystem.
“The examination identified critical deficiencies in United Texas Bank’s compliance with anti-money laundering rules and the Bank Secrecy Act (BSA), including significant violations with respect to banking operations and customer interactions focused on virtual currency,” the Fed said.
The Federal Reserve Board urged United Texas Bank to strengthen its BSA/AML compliance programs, emphasizing the need for robust regulatory frameworks to protect the financial system.
Earlier, the US Treasury and the Federal Reserve System proposed unifying methods for regulating money circulation and extending the term “money” to include cryptocurrencies and digital assets.
Source: Bits
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