According to Odaily, Silvergate Capital Corp, the parent company of Silvergate Bank, has agreed to pay $63 million to settle with the U.S. Securities and Exchange Commission (SEC), the Federal Reserve, and the California Department of Financial Protection and Innovation (DFPI). The regulatory bodies accused the company of failing to maintain an appropriate anti-money laundering program and making misleading disclosures about the effectiveness of the program.
The Federal Reserve imposed a fine of $43 million, while the California regulator imposed a $20 million fine, noting that the bank had deficiencies in tracking internal transactions. The SEC also imposed a $50 million fine, but it is not expected to increase the total amount of the fine. The SEC stated that any fines owed by Silvergate could be offset by the amount it pays to banking regulators, and the settlement agreement still needs court approval.
The SEC also charged former executives of Silvergate. Former CEO Alan Lane and former COO Kathleen Fraher agreed to settle, while former CFO Antonio Martino denied the related charges.