Customers Bancorp in West Reading, Pa., must improve its risk management practices for its digital asset strategy under a written agreement with the Federal Reserve.
The $20.9 billion-asset company must also address deficiencies in its Bank Secrecy Act and anti-money laundering compliance. The agreement also noted shortcomings following regulations tied to the Treasury Department’s Office of Foreign Asset Control (OFAC).
The Fed said in the Aug. 5 enforcement action that it discovered issues as part of a regular examination. The company must submit a written plan for improving its BSA and AML compliance.
Customers must improve management information systems reporting quality and submit a plan for strengthening board oversight of BSA and AML policies and procedures.
Customers must provide the Fed with 30 days’ notice before engaging in any new strategic initiative or third-party relationship tied to digital assets. The same notice applies to creating, testing or launching new intra- or inter-bank instant payments platforms (other than the existing Customers Bank Instant Token network).
The order also requires Customers to craft policies, procedures, and controls to ensure that its bank collects, analyzes and retains complete and accurate information for all customers.