- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-07-02T13:50:00
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering (AML) program failed to properly monitor more than $1 trillion worth of customer transactions.
A penalty of $50 million assessed by the Securities and Exchange Commission (SEC) against the bank and its holding company, Silvergate Capital Corp., will be offset by the penalties Silvergate Bank will pay to the Fed ($43 million) and the California Department of Financial Protection and Innovation ($20 million), the SEC said Monday in a press release.
The SEC also charged Alan Lane, Silvergate Capital’s former chief executive, and Kathleen Fraher, its former chief risk officer, with misleading investors about the strength of its Bank Secrecy Act (BSA) and AML programs, while also charging Antonio Martino, its former chief financial officer, with misleading investors about the company’s losses from expected securities sales following the collapse of crypto-exchange FTX.
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Facing intense pressure from the banking industry, the Federal Reserve Board may scale back two controversial rule proposals aimed at reducing risks of bank failures in the event of a market downturn.
Manfred Bekeris, chief compliance officer at cypto peer-to-peer network Paxful, sat down with Compliance Week to talk about joining the company shortly before its former chief operating officer and co-founder pled guilty to violating the Bank Secrecy Act.
The Federal Reserve Board placed restrictions on Washington-based Farmington State Bank after taking issue with how the liquidating financial institution changed its business plan without seeking proper approvals.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
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The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
