Bank Of America Now Calling Crypto A Risk
Bank of America today stated that cryptocurrency is a risk to its business. Public records show that they are saying” the technology could hamper the second-largest U.S. bank’s ability to comply with anti-money-laundering regulations, pose a competitive threat and force the company to spend more money to keep up with the times, “the bank said in its annual filing with the Securities and Exchange Commission.”
If you look at the report it is mentioned three times in the annual report under risk factors.
The first reference is in the discussion of AML, know-your-customer, sanctions and foreign corruption laws in the U.S.
They state “Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds,” they then go on to say
“Our ability to comply with these laws is dependent on our ability to improve detection and reporting capabilities and reduce variation in control processes and oversight accountability.”
We love that the bank is stating cryptocurrency poses competitive risks as this goes to show it will be a force to be reckoned with.
In the section about new competitors in the financial industry, they are expressing caution about how client preferences could lead them to use products like cryptocurrencies.
“Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.”
The Bank Of America is complaining that they will have to dedicate more resources, and spend money to stay competive. Really!? They can not be serious.
“The widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services,” the bank said.
They are also one bank that has banned crypto credit card purchases but still allow it on their debit cards. Bank of America is one of several U.S. banks that recently banned credit card purchases of cryptocurrency. The bank did not restrict crypto purchases using debit cards, however.
Bank of America is also a prolific filer of patent applications for blockchain technology concepts.