The Federal Reserve Board has issued an enforcement action against Evolve Bancorp and Evolve Bank & Trust—which provides so-called banking as a service products to fintech companies—for failing to comply with anti-money-laundering, risk management, and consumer compliance programs, according to a statement today.
As part of the enforcement action, the Arkansas-based bank will have to strengthen its compliance with existing partners, such as “buy now, pay later” fintech giant Affirm, which earlier this week announced a partnership with Apple. Affirm declined to comment. In April, Evolve had customer funds associated with pig-butchering scams seized. It also provided banking services for fintech Synapse Financial Technologies, which went bankrupt in May. Evolve partners as well with banking fintech Mercury, which provides services for startups.
