The United States Office of the Comptroller of the Currency, or OCC, has stated that it plans to initiate cease and desist proceedings against cryptocurrency custody bank Anchorage Digital for failing to comply with certain anti-money laundering requirements.
The OCC issued a consent order against Anchorage Digital on Thursday, citing its “failure to adopt and implement a compliance programme” in accordance with required Bank Secrecy Act, or BSA, and AML standards. The government agency stated that such actions violated Anchorage Digital’s operating agreement with the OCC, which was established in January 2021.
“Whether they engage in traditional or novel activities, the OCC holds all nationally chartered banks to the same high standards,” said Michael Hsu, acting controller of the currency. “When institutions fall short of federal laws and regulations, we will take action and hold them accountable.”
Anchorage neither admits nor denies the findings of the comptroller, but the order states that the bank has “begun corrective action and is committed to taking all necessary and appropriate steps to remedy the deficiencies.” A consent order implies that two parties — in this case, Anchorage and the OCC — have reached an agreement in principle on how to proceed.
Anchorage Digital stated that it has “already worked to strengthen the areas identified [by the OCC] and will continue to strengthen these areas, reinforcing a new, digital asset standard for internal BSA/AML controls and procedures.” The bank hinted that the OCC’s actions could help set a regulatory precedent, encouraging other firms in the space to establish federally regulated digital asset banks.
According to the OCC, there is a 15-day deadline to form a committee for “specific corrective actions” to ensure the bank is in compliance with AML and BSA requirements, as well as to issue progress reports on the plan as it is implemented. Furthermore, the government agency directed Anchorage to make a BSA officer available to ensure compliance.
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