OCC Takes a Stand
The United States Office of the Comptroller of the Currency (OCC) recently dropped the hammer on Anchorage Digital, a cryptocurrency custody bank, with intentions to initiate cease and desist proceedings. The cause? Anchorage reportedly flunked its obligations related to Anti-Money Laundering (AML) requirements. Perhaps they were busy trying to teach old banking tricks to new digital dogs, and, unfortunately, it didn’t pan out.
Consent Order: The Formal Dirty Laundry
In an announcement that likely made more than a few legal teams sweat, the OCC issued a consent order against Anchorage Digital based on their “failure to adopt and implement a compliance program.” This was all tied to the Bank Secrecy Act (BSA) and AML standards, hinting that Anchorage may have been playing a risky game of hide-and-seek with federal regulations. After all, finding money laundering violations is like playing musical chairs—someone’s always left without a seat.
High Standards for High Stakes
Michael Hsu, the acting comptroller of the currency, stated, “The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional or novel activities.” Let’s pause for a moment to appreciate the diplomatic phrasing: “novel activities” as a euphemism for “you’re not in Kansas anymore, Dorothy.” It’s a brave new world out there, and the last thing anyone wants is to be caught without their compliance toolkit.
Anchorage’s Response: A Squeaky Clean Commitment
Despite the hiccup, Anchorage Digital assured concerned parties that they are neither on the run nor in denial. The institution has acknowledged the OCC’s findings and has reportedly begun taking corrective actions. They even touted their commitment to enhance their internal BSA/AML controls—a proactive approach, much unlike the classic game of legislative dodgeball.
Looking Ahead: The Compliance Roadmap
It seems the OCC is no joking matter when it comes to compliance. They have also issued a 15-day ultimatum for Anchorage to set up a committee dedicated to implementing “specific corrective actions.” After all, when it comes to compliance, they say it’s better to be safe than sorry—and in this case, maybe even better to be proactive than reactive. Let’s hope this serves as a wake-up call for other players in the crypto space to fortify their defenses before they find themselves in a similar hot seat.
