Odaily News The Federal Reserve issued a cease and desist order to United Texas Bank on September 4, noting that the bank had serious deficiencies in its risk management system in its crypto client business. The decision was based on a review conducted in May of this year, which revealed problems with the bank's corporate governance structure, board and senior management supervision, foreign agent banking, and virtual currency client services. The Fed specifically highlighted the bank's "significant deficiencies" in anti-money laundering (AML) measures and Bank Secrecy Act (BSA) compliance. In response, the board of directors of United Texas Bank has agreed to submit a plan to strengthen BSA/AML compliance supervision. The bank's latest quarterly report shows that it has 75 employees and manages approximately $1 billion in assets. Niko Demchuk, legal director of crypto compliance company AMLBot, told Decrypt that the impact of such cease and desist orders goes far beyond the recipient and its customers. He noted: "Each cease and desist order plays an important role in the market. Other banks will work to gain more insights into where they are not in compliance with current AML regulations to improve their own internal AML processes." Demchuk added that the mention of crypto assets will alert other banks that deal with crypto assets to review their risk management systems to ensure that all risks are considered and mitigated. (decrypt)