Federal Reserve Issues Enforcement Action Against Evolve Bancorp Inc. on June 14, 2024

Jun 14, 2024, 03:55 PM

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).