In response to recent scrutiny by the Federal Reserve, Customers Bancorp and its subsidiary, Customers Bank, are set to enhance their Anti-Money Laundering (AML) practices and overall management. The bank, known for its crypto-friendly services, including the Customer Bank Instant Transfer (CBIT) service, has been directed by the Fed to improve its compliance and risk management protocols.
The Federal Reserve’s recent examination highlighted deficiencies in the bank’s AML procedures and management oversight. Over the next two months, the bank is required to submit detailed plans and revised programs to address these issues. This includes overhauling its AML and Bank Secrecy Act (BSA) compliance programs, enhancing customer due diligence, and improving reporting practices for suspicious activities.
Additionally, the bank must review its transaction monitoring from March through August 2023, a period marked by significant instability in the banking sector. A consultant will be engaged to assess whether suspicious activities were properly identified and reported during this time. Customers Bank will also develop strategies to bolster its risk management practices, particularly concerning its digital asset operations.
