On June 14, 2024, the Federal Reserve issued an enforcement action against Evolve Bancorp Inc. for failing to manage risks associated with its fintech partnerships and for not complying with anti-money laundering laws. The action mandates Evolve Bank to strengthen its risk management programs. This move follows a similar FDIC consent order against Cross River Bank in May 2023, highlighting increased regulatory scrutiny on banks involved in embedded finance, fintech, and banking-as-a-service (BaaS).
Cross River: FDIC consent order in May 2023 Evolve: Fed enforcement action today it's an all out assault on banks serving embedded finance, fintech, BaaS (not to mention banks that serve crypto clients) https://t.co/YXhtHiAYYj
Federal Reserve issues enforcement action against Evolve Bank https://t.co/koSBeBQquX
Fed penalizes Evolve Bank for failing to manage fintech partnership risk https://t.co/mnZhYKJv6T https://t.co/aOBVhVAIsy
🔵 FED PENALIZES EVOLVE BANK FOR FAILING TO MANAGE FINTECH PARTNERSHIP RISK The Federal Reserve announced Friday it had ordered Evolve Bancorp Inc to bolster its risk management programs around fintech partnerships as well as anti-money laundering laws. Full Story via Reuters… https://t.co/JQ1PKgSBIL
fed hits evolve bank with enforcement action https://t.co/3EymkfZRZY