Federal Reserve: United Texas Bank Has "Significant Flaws" in Crypto Customer and Bank Risk Management

In its cease-and-desist order issued on Wednesday, the Federal Reserve said United Texas Bank, which has ties to the crypto industry and is understood to have worked with cryptocurrency companies in the past, notably with the Stellar Foundation and Circle's USDC, had "material deficiencies" in crypto customer and bank risk management.
The Fed added that United Texas has since taken steps to strengthen its Bank Secrecy Act and anti-money laundering programs. As a next step, the bank's board must submit a written plan on how to "strengthen board oversight of banks' compliance with BSA/AML requirements," as well as changes to plans such as its "customer due diligence program."
It is the second time in a month that the Fed has taken enforcement action against cryptocurrency-related banks. In August, the Fed said it found "significant deficiencies" in Customers Bancorp, Inc. s risk management and compliance with anti-money laundering laws.