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Anchorage Digital Failed to Comply with Anti-Money Laundering Rules

Anchorage Digital Bank failed to comply with the Anti-Money Laundering (AML) rules, according to the United States Office of the Comptroller of the Currency (OCC). Anchorage Digital is the first licensed United States cryptocurrency bank and one of the major cryptocurrency lenders. The company aims to become the premier digital asset platform for institutions.

On Thursday, the authority issued a “cease and desist” Consent Order against Anchorage Digital for violations after the bank failed to adopt critical rules to prevent money laundering and report suspicious transactions.

According to the order, the cryptocurrency bank’s AML compliance program was not providing proper internal customer verification processes and lacked the personnel to complete these tasks.

“The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional or novel activities,” said the Acting Comptroller of the Currency, Michael J. Hsu. 

The consent Order obliges Anchorage Digital to set a Compliance Committee within the 15 days, which would effective immediately detail the actions necessary to achieve compliance with AML regulations.

As the OCC document further states, both parties have reached an agreement. Reportedly, Anchorage has already initiated corrective actions and “has started all necessary and appropriate steps to remedy the deficiencies identified by the OCC.”

The previous Anchorage Trust Company was granted OCC approval to become Anchorage Digital Bank in January 2021. Under the operating agreement, Anchorage Digital is obliged to comply with Bank Secrecy Act /Anti-money Laundering (BSA/AML) requirements.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Simona is a fintech journalist and content editor at DailyCoin Academy, which focuses on educating new crypto investors. She entered the crypto space in early 2018, got burned, but discovered a passion for trading, and now it’s her hobby. Simona covers crypto and blockchain-related topics and takes a deeper look at what lies behind the latest industry trends.