Federal Reserve Terminates United Texas Bank Crypto Enforcement Action

The Federal Reserve Board said Friday that it has terminated the enforcement action against United Texas Bank, a Dallas, Texas lender whose anti-money-laundering controls for virtual currency clients drew regulatory scrutiny in 2024. The termination, effective September 2, 2026, was announced in a joint release with the Texas Department of Banking, the bank’s state supervisor.

What the 2024 Cease-and-Desist Order Required

The order, dated August 29, 2024, followed a May 2023 examination by the Federal Reserve Bank of Dallas and the Texas Department of Banking that identified significant deficiencies in the bank’s corporate governance and oversight. Examiners specifically flagged weaknesses in risk management and compliance with anti-money-laundering rules under the Bank Secrecy Act, tied to the bank’s foreign correspondent banking and virtual currency customers. Under the consent order, the bank was required to strengthen board oversight, overhaul its BSA/AML compliance program, revise customer due diligence, and improve suspicious activity monitoring. United Texas Bank, a Texas state-chartered institution that is a member of the Federal Reserve System, consented to the order without admitting or denying the findings, and the order remained in effect for nearly two years before regulators ended it.