- Anchorage became the first crypto company in the United States to be granted a national bank charter by the OCC. Former interim comptroller of the currency Brian Brooks was temporarily the CEO of Binance.
- The OCC issued a consent order against Anchorage Digital on Thursday, citing the company’s failure to design and implement a compliance program in accordance with the mandated Bank Secrecy Act, or BSA, and anti-money laundering (AML) regulations.
- The bank has a 15-day deadline to form a committee for specified corrective steps to ensure compliance with AML and BSA regulations, as well as issue progress gives an account of the arrangement as it is executed. The federal bureau also ordered Anchorage to have a BSA officer on hand to guarantee compliance.
The bank suggested that the OCC’s actions might set a regulatory precedent, encouraging other companies in the space to establish federally authorized digital asset banks. The US Office of the Comptroller of the Currency (OCC) has announced that it will seek a cease and desist order against cryptocurrency custodial bank Anchorage Digital for failing to consent to the specific enemy of tax evasion (AML) guidelines.
Efforts To Fix The Inadequacies
The OCC issued a consent order against Anchorage Digital on Thursday, citing the company’s failure to design and implement a compliance programme in accordance with the mandated Bank Secrecy Act, or BSA, and anti-money laundering (AML) regulations. Such acts, according to the government office, put Anchorage Digital in violation of its operating agreement with the OCC, which was signed in January 2021.
Whether they participate in traditional or unique operations, the OCC holds all nationally chartered banks to the same high standards, said Michael Hsu, acting comptroller of the currency. When institutions fail to comply with federal rules and regulations, we will take action and hold them accountable.
Anchorage does not confirm or deny the findings of the controller. The bank has begun corrective action and is committed to taking all necessary and appropriate efforts to fix the inadequacies, according to the ruling. By definition, a consent order means that two parties — in this case, Anchorage and the OCC — have reached an agreement in principle on how to proceed.
Anchorage Digital said in a statement to Cointelegraph that 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, and that it will continue to bolster these areas, reinforcing a new, digital asset standard for internal BSA/AML controls and procedures. The bank suggested that the OCC’s actions might set a regulatory precedent, encouraging other companies in the space to establish federally-authorized digital asset banks.
Progress Reports
According to the OCC, the bank has a 15-day deadline to form a committee for specified corrective steps to ensure compliance with AML and BSA regulations, as well as issue progress reports on the plan as it is implemented. The federal bureau also ordered Anchorage to have a BSA officer on hand to guarantee compliance.
In January 2021, Anchorage became the first crypto company in the United States to be granted a national bank charter by the OCC. Former interim comptroller of the currency Brian Brooks was temporarily the CEO of Binance.US before becoming the CEO of crypto mining startup Bitfury after leaving the government agency.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/24/anchorage-technology-is-penalized-by-the-occ-for-failure-to-obey-with-anti-money-laundering-rules/