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OCC points order towards Anchorage Digital over AML compliance

OCC points order towards Anchorage Digital over AML compliance thumbnail
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The United States Office of the Comptroller of the Currency, or OCC, has mentioned it intends to pursue stop and desist proceedings towards cryptocurrency custody financial institution Anchorage Digital for violating sure anti-money laundering necessities.

In a Thursday announcement, the OCC mentioned it issued a consent order towards Anchorage Digital primarily based on its “failure to undertake and implement a compliance program” in accordance with required Bank Secrecy Act, or BSA, and AML requirements. The authorities bureau mentioned such actions positioned Anchorage Digital in violation of its working settlement with the OCC, established in January 2021.

“The OCC holds all nationally chartered banks to the identical excessive requirements, whether or not they interact in conventional or novel actions,” mentioned Michael Hsu, performing comptroller of the forex. “When establishments fall brief, we are going to take motion and maintain them accountable to make sure compliance with federal legal guidelines and rules.”

Anchorage neither admits nor denies the comptroller’s findings, however the order reported the financial institution has “begun corrective motion and is dedicated to taking all crucial and acceptable steps to treatment the deficiencies.” A consent order, by definition, implies two events — on this case, Anchorage and the OCC — have reached an settlement in precept on transferring ahead.

In a press release to Cointelegraph, Anchorage Digital mentioned it had “already been working to strengthen the areas recognized [by the OCC] and can proceed to bolster these areas, reinforcing a brand new, digital asset commonplace for inner BSA/AML controls and procedures.” The financial institution hinted that the OCC’s actions would possibly assist set up a regulatory precedent that might encourage different corporations within the area to arrange federally regulated digital asset banks.

According to the OCC, there’s a 15-day deadline to set up a committee for “particular corrective actions” to make sure the financial institution is in compliance with the AML and BSA necessities, and difficulty progress reviews on the plan as it’s executed. In addition, the federal government bureau ordered Anchorage make a BSA officer obtainable to make sure compliance.

Related: OCC Comptroller requires federal collaboration with crypto intermediaries

Anchorage was the primary crypto agency within the United States to obtain a nationwide financial institution constitution from the OCC in January 2021. Since his departure from the federal government bureau, former Acting Comptroller of the Currency Brian Brooks was briefly the CEO of Binance.US and now the CEO of crypto mining agency Bitfury.

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