Fed Ends Enforcement Action Against United Texas Bank

United Texas Bank drew regulatory scrutiny in 2024 over deficiencies in risk management and compliance with anti-money laundering rules tied to foreign correspondent banking and virtual currency customers. The Federal Reserve’s enforcement action required the Dallas-based lender to strengthen oversight, customer due diligence and internal controls. The case became a test of whether crypto-friendly banks could serve digital-asset businesses while meeting safeguards applied across the traditional banking system.

The Federal Reserve has terminated its 2024 enforcement action, signaling that United Texas Bank has adequately addressed the shortcomings cited by supervisors. The lender has since converted to a national bank charter, shifting its primary federal oversight to the Office of the Comptroller of the Currency. It remains subject to an OCC consent order, however, making the Fed’s decision a significant compliance milestone rather than a complete release from regulatory restrictions.