New York authorities fined Robinhood’s cryptocurrency unit $30 million

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Today, August 2, New York State Financial Services Compliance Officer Adrienne Harris announced that Robinhood Crypto, a well-known fintech company Robinhood Crypto, will pay New York State a $30 million fine. in the field of compliance with the law on bank secrecy / obligations to combat money laundering and cybersecurity.

Upon review, the department found that Robinhood Crypto’s bank secrecy/anti-money laundering compliance program, including its transaction monitoring system, had significant deficiencies. Among other things, the bank secrecy/anti-money laundering compliance program was understaffed; there was no timely transition from a manual transaction monitoring system that did not match the size, customer profile and transaction volumes of Robinhood Crypto. The department also found critical flaws in the Robinhood Crypto cybersecurity program.

“As its business has grown, Robinhood Crypto has failed to invest adequate resources and attention in developing and maintaining our department’s program compliance culture, resulting in significant violations of anti-money laundering and cybersecurity regulations,” said Superintendent Harris. with virtual currencies and licensed in New York State are subject to the same anti-money laundering, consumer protection and cybersecurity regulations as traditional financial services companies.”

In addition to the penalty, Robinhood Crypto will also be required to hire an independent consultant who will conduct a comprehensive assessment of the company’s actions, as well as the measures that Robinhood Crypto will take to correct identified deficiencies and violations.


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Evgeniy Khvostik

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