Federal Reserve Hits Customers Bancorp With Enforcement Action

The Federal Reserve Board issued an enforcement action against Customers Bancorp Inc., alleging deficiencies in the company’s risk management and compliance practices related to anti-money laundering rules. The company’s shares sank as much as 22%.

The action requires Customers Bancorp and its subsidiary Customers Bank to submit a written plan to improve risk-management practices around the company’s digital-asset strategy, as well as a revised customer due-diligence program. The bank operates a payments platform that allows cryptocurrency clients to move dollars 24 hours a day, seven days a week.

The Fed also told the company’s board of directors to submit ...