OCC says Anchorage Digital failed to implement AML requirements

OCC says Anchorage Digital failed to implement AML requirements

Anchorage Digital Bank has agreed to take remedial action and will appoint a Bank Secrecy Law Officer to help ensure compliance.

The Office of the Comptroller of the Currency (OCC), the U.S. national banking regulator, has issued a consent decree against Anchorage Digital Bank, according to a press release published Thursday, April 21.

Anchorage Digital is the first digital asset bank to receive regulatory approval from the OCC. In January 2021, the company’s National Trust charter application was conditionally approved, enabling it to change to the National Association Anchorage Digital Bank.

However, the OCC said the former Anchorage Trust failed to implement the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements it had agreed to as part of a condition for operating as a federally regulated digital asset bank.


The OCC said in a press release that Anchorage Digital’s failure to comply with KYC and AML regulations led to the order.

“The OCC requires all state-chartered banks to adhere to the same high standards, whether they conduct traditional or new activities,” said Acting Comptroller of the Currency Michael J. Hsu.

“When agencies fall short, we take action and hold them accountable to ensure compliance with federal laws and regulations,” he added.

Anchorage Digital has initiated remedial action

As part of the remedies required by the order, Anchorage must appoint a compliance committee with no fewer than three members. It also developed an action plan to address all BSA deficiencies.

Banks have thirty (30) days from the date of the consent order to submit an action plan to achieve and maintain compliance with relevant KYC and AML laws.

Anchorage also agreed to hire a Bank Secrecy Act officer and provide them with all necessary support to achieve compliance. In addition to this, banks will need to ensure greater customer due diligence as well as customer risk identification checks.

In the order, the OCC noted that Anchorage Digital had instituted “corrective actions” and committed to ensuring full compliance.

Source link


Be the first to comment

Leave a Reply

Your email address will not be published.