United Texas Bank in Dallas is working under a cease-and-desist order after a Federal Reserve examination found “significant deficiencies” tied to foreign correspondent banking and virtual currency customers.
Regulators said in the C&D that a May 2023 exam identified issues with the $1.1 billion-asset bank’s risk management and compliance with anti-money laundering laws and regulations.
United Texas must submit a written plan to improve Bank Secrecy Act and AML deficiencies. The bank must also provide a report designed to improve board and management practices, incorporating January 2024 recommendations from an independent third party.
The bank also has to create written programs to improve BSA and AML compliance and how it conducts customer due diligence. The bank must identify the customer categories “that pose a heightened risk of conducting potentially illicit activities.”