As a seasoned financial analyst with over two decades of experience, I’ve witnessed the ebb and flow of regulatory scrutiny within the banking sector. The recent action taken by the Federal Reserve against Customers Bancorp and its subsidiary, Customers Bank, is a testament to this ongoing dance between innovation and compliance.
As a researcher, I’m reporting that I’ve observed the Federal Reserve implementing rigorous supervision and compliance guidelines for Customers Bancorp, Inc., as well as their subsidiary, Customers Bank. This means they are being closely monitored to ensure they adhere to all the necessary regulations.
Based on my latest findings as a researcher, a recent review conducted by the Federal Reserve Bank of Philadelphia has highlighted substantial issues in the bank’s risk management and compliance procedures, notably with regards to adherence to anti-money laundering regulations and the Bank Secrecy Act.
As a researcher, I’ve always been an advocate for cryptocurrencies. However, it’s worrying to see how the Federal Reserve and FDIC are systematically eliminating banks that are friendly towards crypto, one after another. This was recently pointed out by Nic Carter on X.
As an analyst, I find myself in agreement with the Federal Reserve’s stance. They advise that our board of directors should bolster their oversight and resources to effectively manage high-risk activities. Particularly, they suggest a thorough examination of our digital asset strategy and instant payments platform, areas where scrutiny is paramount.
It’s worth mentioning that American banks are subtly cutting ties with businesses involved in cryptocurrency. This revival of Operation Chokepoint 2.0 sees bank supervisors pressuring bank executives to close down cryptocurrency-related companies and activities.
— Gabor Gurbacs (@gaborgurbacs) August 8, 2024
As a long-time cryptocurrency enthusiast who has witnessed the rise and fall of numerous digital assets, I can’t help but feel outraged by this latest announcement that has sparked controversy within the crypto community. It seems that the Federal Reserve and FDIC are once again attempting to stifle innovation in the blockchain space, a move that is all too familiar to those who have been following the evolution of cryptocurrencies.
Agreement between the Fed and Customers Bancorp
According to the signed contract, both Customers Bancorp and Customers Bank should prepare and submit comprehensive action plans within two months to tackle these issues.
These plans must outline steps to strengthen board oversight, improve risk management, and enhance compliance with requirements and the Office of Foreign Assets Control regulations.
Furthermore, the bank is required to update its procedures for verifying customers and detecting unusual account activities. This agreement also mandates periodic progress updates to maintain compliance with the new regulations.
Both Customers Bancorp and Customers Bank consented to these terms, signifying their dedication to enhancing their compliance stance and bolstering regulatory trust.
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2024-08-08 19:38