The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “significant failures in the areas of bank secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
Robinhood Crypto Settles With the DFS
The New York State Department of Financial Services (DFS) introduced Tuesday that Robinhood Crypto LLC (RHC) can pay a $30 million penalty to New York State for “significant failures in the areas of bank secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
The failures resulted in violations of the division’s Virtual Currency Regulation, Money Transmitter Regulation, Transaction Monitoring Regulation, and Cybersecurity Regulation, the DFS detailed.
Superintendent of Financial Services Adrienne A. Harris commented:
As its business grew, Robinhood Crypto failed to take a position the correct resources and a spotlight to develop and keep a tradition of compliance — a failure that resulted in important violations of the Department’s anti-money laundering and cybersecurity laws.
“All of these deficiencies resulted from what the Department found were significant shortcomings in the management and oversight of RHC’s compliance programs, including a failure to foster and maintain an adequate culture of compliance,” the announcement continues.
Besides the $30 million penalty, Robinhood Crypto might be required to retain an unbiased guide that may carry out a complete analysis of its compliance with the DFS laws.
The New York State regulator authorized Robinhood Crypto’s purposes for a digital forex license and a money transmission license in January 2019, stating on the time:
DFS has approved Robinhood Crypto to supply providers for shopping for, promoting, and storing seven digital currencies, together with bitcoin, ether, bitcoin money, and litecoin.
Robinhood affords commission-free crypto investing. The platform at present helps the shopping for, promoting, and real-time market knowledge for bitcoin (BTC), bitcoin money (BCH), bitcoin sv (BSV), chainlink (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), ethereum traditional (ETC), litecoin (LTC), polygon (MATIC), shiba inu (SHIB), solana (SOL), and uniswap (UNI).
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