Mar 15, 2023 13:32 UTC
Mar 15, 2023 at 13:32 UTC
Signature Bank investigating for money laundering prior to demise
The pro-crypto bank was reportedly under binary examinations to uncover if it was taking visionary measures to stop money laundering.
The cryptocurrency-friendly signature Bank was reportedly being delved by two United States government bodies prior to its collapse.
According to a March 15 Bloomberg report citing people familiar with the matter, investigators with the Justice Department were examining whether hand took acceptable measures to descry implicit plutocrat laundering by its guests.
It was noted the controller was particularly concerned as to whether the bank was taking preemptive measures to cover deals for “ signs of crime ” and duly vetting account holders.
A separate inquiry by the Securities and Exchange Commission was also “ taking a look ” at the bank, according to two anonymous sources quoted by Bloomberg. Details regarding the nature of the SEC’s inquiry weren’t reported.
It’s unclear when the examinations began and what effect, if any, they had on the recent decision by New York state controllers to close the bank.
It’s reported hand and its staff aren’t indicted of wrongdoing and the examinations may be perfected without any charges or farther action taken by the SEC or the Department of Justice( DOJ).
The report comes after a March 14 class action action by hand shareholders filed against the bank and former directors for claiming to be “ financially strong, ” only three days before it was forcefully shuttered.
Barney Frank, a former board member of hand Bank, said on March 13 the controllers wanted “ to shoot a veritably stronganti-crypto communication. ”
Frank added the crypto-friendly bank came the “ bill boy, ” as there was “ no bankruptcy grounded on the fundamentals. ”
hand, which was closed on March 12, was part of a series of bank closures that also included Silvergate Capital and Silicon Valley Bank( SVB).
The DOJ and the SEC have reportedly since initiated separate examinations into the collapse of Silvergate Capital and SVB.
It’s reported the controllers will examine the events leading up to the bank’s collapse, including checking security forms that bared the trade of SVB shares by the establishment’s CEO Greg Becker and CFO Daniel Beck that took place two weeks previous to its downfall.
The SEC has not formally reflected on the matters, but SEC president Gary Gensler said on March 12 that it “ will probe and bring enforcement conduct if we find violations of the civil securities laws. ”