The Office of the Comptroller of the Currency (OCC) has accused the cryptocurrency bank Anchorage of violating its operating agreement with the regulator. The agency explained that the company’s compliance programme does not cover the required provisions of the BSA/AML.
“The OCC applies equally high standards to all banks chartered at the national level, regardless of whether they engage in traditional or innovative activities. When institutions do not meet their obligations, we take action and hold them to account to ensure compliance with the law,” said Michael Hsu, Acting Comptroller of the Currency.
Anchorage received a license as a national ‘bank of digital assets’ in January 2021. The regulator’s approval means that the company can be regarded as a qualified custodian.
On 21 April 2022, the OCC issued a consent order (Consent Order), under which ‘the bank did not adopt or implement a compliance programme covering the required elements of the BSA/AML, in particular the controls over proper KYC procedures and monitoring of suspicious activity’.
Anchorage has been ordered to create a dedicated department to oversee the company’s BSA compliance. In addition, the regulator requires the establishment of a compliance committee with at least three members, and the implementation of more stringent KYC procedures.
The consent order implies that the parties have reached some consensus on the way forward. The document states that Anchorage ‘has begun corrective actions and undertakes to take all necessary and proper steps to address the deficiencies identified by the OCC’.
In December 2021, Anchorage raised $350 million from KKR, Goldman Sachs and other investors. The crypto bank was valued at $3 billion.
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