Anchorage Digital Bank has agreed to implement corrective measures and will appoint a Bank Secrecy Act officer to help ensure compliance.
The Office of the Comptroller of the Currency (OCC), the United States’ federal banking regulator, issued a consent order against Anchorage Digital Bank, according to a press release published Thursday, April 21.
Anchorage Digital was the first digital-asset bank to receive regulatory approval from the OCC. Granted in January 2021, the conditional approval for the company’s national trust charter allowed it to operate as Anchorage Digital Bank, National Association.
However, the OCC says the former Anchorage Trust Company failed to implement Bank Secrecy Act (BSA) and anti-money laundering (AML) requirements it had agreed to as a condition of operating as a federally regulated digital-asset bank.
The OCC stated that Anchorage Digital’s shortcomings in KYC and AML compliance prompted the consent order.
“The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional activities or novel ones,” said Michael J. Hsu, Acting Comptroller of the Currency.
“When institutions fail, we will take action and hold them accountable to ensure compliance with federal laws and regulations,” he added.
Anchorage Digital to implement corrective actions
As part of the corrective actions required by the order, Anchorage is required to appoint a compliance committee composed of at least three members. The bank must also develop an action plan to address any BSA deficiencies.
Anchorage has thirty (30) days from the date of the consent order to submit the action plan that will achieve and maintain compliance with applicable KYC and AML laws.
The bank has also agreed to hire a Bank Secrecy Act officer and provide that officer with the necessary support to carry out compliance responsibilities. In addition, Anchorage must ensure enhanced customer due diligence and implement customer risk-identification controls.
The OCC noted in the order that Anchorage Digital has already implemented “corrective measures” and committed to attaining full compliance.