Reported by Pete Schroeder

The U.S. Federal Reserve announced on Thursday it had imposed an enforcement action against Customers Bancorp (CUBI.N) for “significant deficiencies” around the bank’s risk-management and anti money-laundering practices.

The enforcement action against the Pennsylvania-based bank, which provides digital asset services and a tokenized instant payments platform, stemmed from a recent examination by the Fed, the central bank said.

The order specifically directs the bank to overhaul its risk management around its digital assets business, including ensuring staff have the necessary expertise and sufficient resources, and taking steps to quickly address risk exposures that emerge from that business.

Read full report: https://www.reuters.com/business/finance/fed-announces-enforcement-action-against-customers-bancorp-risk-management-2024-08-08/

Read FRB written agreement: https://www.federalreserve.gov/newsevents/pressreleases/files/enf20240808a1.pdf