WASHINGTON—The Federal Reserve has fined Silvergate Capital Corporation and Silvergate Bank $43 million for deficiencies in Silvergate's monitoring of transactions in compliance with anti-money laundering laws.
The Fed said its action was taken in coordination with the Department of Financial Protection and Innovation of the State of California, the state supervisor of Silvergate.
The penalties announced by the Fed and state total $63 million.
Separately, the announced a penalty against Silvergate Capital Corporation.
One of Three High-Profile Failures
Silvergate was one of three high-profile banks that failed in the first half of 2023, along with Signature Bank and Silicon Valley Bank. All were placed into conservatorship.
Silvergate announced in 2023 it was voluntarily winding down its operations, and has now paid back all deposits to its customers. Of the three Silvergate had the highest concentration of business with the crypto industry. The bank voluntarily liquidated.