Published: 26.04.2022
Article reading time:
2 minutes.
The Office of the Comptroller of the Currency (OCC) has announced that Anchorage Digital is failing to meet its anti-money laundering obligations.
Anchorage Digital Bank was opened by the custodial company Anchorage, which received a conditional banking license from OCC in January 2021. The license allowed the bank to provide customers with services for storing cryptocurrencies and working with them. Anchorage Digital became the first digital asset organization to receive a banking license. The OCC argued that prior to issuing the permit, Anchorage had passed the rigorous standards review applied to traditional financial companies.
Now the agency has stated that at the end of 2021, Anchorage Digital did not fulfill its obligations. The bank failed to implement a Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance program. We are talking about monitoring suspicious activity, internal verification of customers, officials and staff, as well as staff training. OCC announced its intention to issue a “no continuation of illegal activity” order on the part of the bank.
OCC director Michael Hsu said that all state-registered banks must comply with the same requirements, whether they work with traditional or digital assets. If financial institutions fail to do their job, the agency holds them accountable to ensure compliance with federal laws.
The OCC directed Anchorage management to establish an AML Compliance Committee of at least three members. The majority must be non-staff directors. Anchorage must also appoint a dedicated officer to ensure compliance with the BSA. The committee is required to provide progress reports to the regulator.
Anchorage did not argue with the OCC. However, the company said it follows the same standards as traditional federally registered banks. The conclusions that the OCC made only showed what needs to be worked hard. Therefore, Anchorage will make the necessary efforts to comply with the BSA and AML, the company said.
OSS has previously announced that digital assets can enhance the functionality of financial services, but banks must be aware of the associated risks.
Source: Bits
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