The United States Office of the Comptroller of the Currency, or OCC, has stated it intends to pursue stop and desist proceedings in opposition to cryptocurrency custody financial institution Anchorage Digital for violating sure anti-money laundering necessities.
In a Thursday announcement, the OCC stated it issued a consent order in opposition to Anchorage Digital primarily based on its “failure to adopt and implement a compliance program” in accordance with required Bank Secrecy Act, or BSA, and AML requirements. The authorities bureau stated 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 same high standards, whether they engage in traditional or novel activities,” stated Michael Hsu, appearing comptroller of the forex. “When institutions fall short, we will take action and hold them accountable to ensure compliance with federal laws and regulations.”
Anchorage neither admits nor denies the comptroller’s findings, however the order reported the financial institution has “begun corrective action and is committed to taking all necessary and appropriate steps to remedy 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 an announcement to Cointelegraph, Anchorage Digital stated it had “already been working to strengthen the areas identified [by the OCC] and will continue to bolster these areas, reinforcing a new, digital asset standard for internal 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 companies within the house to arrange federally regulated digital asset banks.
According to the OCC, there’s a 15-day deadline to ascertain a committee for “specific corrective actions” to make sure the financial institution is in compliance with the AML and BSA necessities, and concern 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.