The United States Federal Reserve has announced the termination of its enforcement action against Silvergate Bank alongside its holdings company Silvergate Capital Corporation. This year, the board of the central bank fined the institution $43 million over non-compliance with anti-money laundering (AML) regulations.\u00a0<\/span><\/p>\n According to a July 26 announcement, the Federal Reserve has terminated the action against the bank for breach of certain regulations. The bank has completed its liquidation following enforcement actions brought in May 2023. The crypto-friendly institution faced headwinds leading to an eventual collapse and a decision to wind down.\u00a0<\/span><\/p>\n <\/p>\n \u201c<\/span>The Board\u2019s enforcement action, which has been in effect since May 2023, ensured that Silvergate would liquidate and wind down operations in a manner that protected the bank\u2019s depositors. Since that time, Silvergate has completed its liquidation and wind-down plan, has paid back all deposits to its customers, and no longer functions as a bank,\u201d <\/span><\/i>the Federal Reserve wrote.<\/span><\/p>\n Apart from the enforcement action, the Federal Reserve fined <\/span>Silvergate Bank<\/span><\/a> $43 million for noncompliance with AML regulations. Alongside this, state regulators also fined the firm raising total fines to $63 million. The bank agreed to settle the charges which included a misrepresentation to shareholders about having proper Bank Secrecy Act compliance when it was not the case.\u00a0<\/span><\/p>\n <\/p>\nFederal Reserve Ends Action<\/strong>\u00a0<\/span><\/h2>\n
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