Federal Reserve Enforces Compliance Overhaul at Evolve Bank

Evolve Bank & Trust faces stringent requirements to address deficiencies in anti-money laundering, risk management, and consumer protection programs.

The Federal Reserve Board issued a cease-and-desist order against Evolve Bank & Trust for inadequate compliance with financial regulations.
The bank must enhance oversight and monitoring of its fintech partnerships, including improved recordkeeping and consumer compliance.
Evolve is prohibited from entering new fintech partnerships without regulatory approval and must develop a comprehensive risk management plan.
The enforcement action follows examinations revealing unsafe banking practices and is independent of Synapse Financial's bankruptcy proceedings.
Evolve has committed to significant investments in technology and personnel to strengthen its compliance and risk management frameworks.