The US Federal Reserve (Fed) sent a warning letter to United Texas Bank, which has connections to the cryptocurrency sector.

According to the statement made by the Fed, it was determined that there are "serious deficiencies" in the bank's relationship with its customers, including crypto users, and in risk management.

The Fed began reviewing United Texas Bank in May 2023 and found a lack of oversight in the bank's board of directors and senior management.

Fed stated, "The examination revealed significant deficiencies, particularly in compliance with foreign banking and virtual currency customers, especially in the areas of risk management and anti-money laundering ("AML") laws, rules, and regulations."

After these reviews, United Texas Bank took steps to strengthen the Bank Secrecy Act (BSA) and anti-money laundering program.

It was stated that the board of directors needs to prepare a plan that strengthens compliance with BSA/AML requirements and makes changes to the customer due diligence program.

Was working with cryptocurrency companies.

Texas Bank had previously worked with Stellar Foundation and Circle's USDC. In 2021, MoneyGram partnered with Stellar to enable users to receive crypto payments in their local currencies.

MoneyGram network has been integrated into the Stellar blockchain for USDC transactions, with United Texas Bank serving as a settlement bank between Circle and MoneyGram.