Introduction
Silvergate Bank, a California-based bank with a focus on digital currency, has received an order from the Federal Reserve Board as part of its self-liquidation plan. The bank has been instructed to take certain actions to ensure compliance with regulations and to protect the interests of depositors.
Order Details
The order issued by the Federal Reserve Board requires Silvergate Bank to take several steps to address deficiencies in its anti-money laundering program, including implementing a risk-based system for monitoring transactions and enhancing its customer due diligence procedures. The bank is also required to provide regular reports to the Federal Reserve Board on its progress in addressing these deficiencies.
In addition to the anti-money laundering requirements, the order also requires Silvergate Bank to take steps to improve its management and oversight of operations. This includes developing and implementing a comprehensive risk management program, improving its internal controls and audit functions, and enhancing its board oversight and governance.
Impact on Silvergate Bank
The order from the Federal Reserve Board is not expected to have a significant impact on Silvergate Bank’s operations or customers. The bank has already taken steps to address the deficiencies outlined in the order, and is committed to continuing to improve its compliance and risk management programs.
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Conclusion
The order issued by the Federal Reserve Board is an important step in ensuring that Silvergate Bank operates in compliance with regulations and in a manner that protects the interests of its depositors. By taking the necessary steps to address the deficiencies outlined in the order, the bank can continue to serve its customers and grow its business in the digital currency space.
