Goldman Sachs fintech unit TxB gets compliance warning from Fed: report

Goldman Sachs Group Inc.
GS,
-0.22%
financial technology transaction banking unit (TxB) has drawn a compliance warning from the U.S. Federal Reserve and has now ceased adding higher-risk nonbank clients to its platform, the Financial Times reported Thursday. Federal banking regulators flagged insufficient due diligence and monitoring by TxB, said the report, which cited people familiar with the process. Goldman Sachs declined to comment for the article. The report said TxB’s cash payments services and other businesses were not included in the Fed’s warning. Digital solutions offered by Goldman’s transaction banking unit include secure mobile authentication, client onboarding and account opening. Goldman Sachs stock was down 0.1% in recent trades.