Silvergate Bank to pay $63M to Fed, California over BSA/AML deficiencies


Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering (AML) program failed to properly monitor more than $1 trillion worth of customer transactions.

A penalty of $50 million assessed by the Securities and Exchange Commission (SEC) against the bank and its holding company, Silvergate Capital Corp., will be offset by the penalties Silvergate Bank will pay to the Fed ($43 million) and the California Department of Financial Protection and Innovation ($20 million), the SEC said Monday in a press release.

The SEC also charged Alan Lane, Silvergate Capital’s former chief executive, and Kathleen Fraher, its former chief risk officer, with misleading investors about the strength of its Bank Secrecy Act (BSA) and AML programs, while also charging Antonio Martino, its former chief financial officer, with misleading investors about the company’s losses from expected securities sales following the collapse of crypto-exchange FTX.

lock iconTHIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.