Homeland Security Launches Investigation Into Anchorage Digital: Barron’s

Key Takeaways:

• Homeland Security’s El Dorado Task Force is reportedly investigating Anchorage Digital Bank’s internal practices and policies.
• The investigation follows a past consent order from the OCC, which cited the bank’s failure to meet anti-money laundering compliance standards.
• The probe’s timing coincides with Anchorage’s newly announced crypto custody partnership with BlackRock.

A branch of the U.S. Department of Homeland Security tasked with fighting money laundering and financial crimes at large is investigating Anchorage Digital Bank, a Monday report from Barron’s alleges.

According to an April 14 report from the media outlet, members of Homeland Security’s El Dorado Task Force have reached out to employees in recent weeks over the crypto company’s “practices and policies.”

Established in 1992, a webpage from the U.S. Immigration and Customs Enforcement (ICE) states that the specialized task force’s mission is “to disrupt and dismantle transnational money laundering organizations by conducting aggressive proactive investigations.”

BREAKING: U.S. crypto bank Anchorage Digital is under investigation by the Department of Homeland Security, according to sources familiar with the matter. pic.twitter.com/XnD8rHwXov

Anchorage is known for being the only federally chartered digital asset bank, with backers including heavyweight financial players such as Andreessen Horowitz, Goldman Sachs, and more.

Founded by engineers Diogo Mónica and Nathan McCauley in 2017, the firm previously faced a consent order from the U.S. Office of the Comptroller of the Currency (OCC) over its failure to implement a compliance program in line with anti-money laundering standards.

“The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional or novel activities,” former Acting Comptroller of the Currency Michael J. Hsu said at the time.

“When institutions fall short, we will take action and hold them accountable to ensure compliance with federal laws and regulations,” he added.

News of the probe comes just days after reports emerged that Anchorage Digital Bank had teamed up with BlackRock for crypto custody services, with the world’s largest investment bank holding tens of billions of dollars of digital assets.

A press release from the firm earlier this month states that the partnership will “lay the groundwork for deeper collaboration between BlackRock and Anchorage Digital in response to rising client demand for digital assets.”

As of Monday, it was unclear if the reported probe had any effect of the aforementioned business relationship.

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