Customers Bancorp hit with Fed action for risk management deficiencies
Adds detail and context, stock price move
By Pete Schroeder
WASHINGTON, Aug 8 (Reuters) -The U.S.Federal Reserve announced Thursday it had imposed an enforcement action against Customers Bancorp CUBI.N for "significant deficiencies" around the bank's risk management and anti money-laundering practices.
The bank's stock fell sharply after the Fed announced the action, falling over 20% in midday trading.
The enforcement action against the Pennsylvania-based bank, which provides digital asset services and a tokenized instant payments platform, stemmed from a recent examination by the Fed, the central bank said.
A spokesperson for the bank did not immediately respond to a request for comment.
The enforcement action does not come with a fine, but directs the bank to overhaul its policies to address identified shortcomings, and regularly report back to regulators on its progress.
The order specifically directs the bank to overhaul its risk management around its digital assets business, including ensuring staff have the necessary expertise and sufficient resources, and taking steps to quickly address risk exposures that emerge from that business.
The Fed also directed the bank to bolster its customer due-diligence and suspicious activity reporting.
Reporting by Pete Schroeder; Editing by Franklin Paul and David Holmes
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