On August 8, the US Federal Reserve took enforcement action against Customers Bank, a Pennsylvania-based financial institution known for its extensive involvement in the cryptocurrency sector.
The primary reason for the action was the bankâs failure to comply with anti-money laundering (AML) regulations. In particular, the bankâs CBIT service, which enables USD payments on a blockchain platform, has come under scrutiny. Although Customers Bank does not directly engage in cryptocurrency transactions, the service has become the focus of regulatory attention due to its important role in supporting digital asset companies.
Customers Bancorp, the parent company of Customers Bank, has pledged to take corrective actions, including improving board oversight, policy compliance, and enhancing management of digital asset-related activities.
The bankâs customers must present a detailed plan within 60 days to address the identified issues, and hire a consultant to review its transaction monitoring operations between March and August 2023.
Customers Bank has emerged as a key partner for many crypto companies following the collapse of Silvergate and Signature Bank. However, like those two banks, Customers Bank is facing pressure from regulators over its risk management and crypto trading.
