The New York State Division of Monetary Companies (DFS) has fined Robinhood Crypto $30 million for “important failures within the areas of financial institution secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
Robinhood Crypto Settles With the DFS
The New York State Division of Monetary Companies (DFS) introduced Tuesday that Robinhood Crypto LLC (RHC) can pay a $30 million penalty to New York State for “important failures within the areas of financial institution secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
The failures resulted in violations of the division’s Digital Forex Regulation, Cash Transmitter Regulation, Transaction Monitoring Regulation, and Cybersecurity Regulation, the DFS detailed.
Superintendent of Monetary Companies Adrienne A. Harris commented:
As its enterprise grew, Robinhood Crypto failed to take a position the correct assets and a spotlight to develop and keep a tradition of compliance — a failure that resulted in important violations of the Division’s anti-money laundering and cybersecurity rules.
“All of those deficiencies resulted from what the Division discovered have been important shortcomings within the administration and oversight of RHC’s compliance packages, together with a failure to foster and keep an ample tradition of compliance,” the announcement continues.
Apart from the $30 million penalty, Robinhood Crypto might be required to retain an unbiased advisor that can carry out a complete analysis of its compliance with the DFS rules.
The New York State regulator accredited Robinhood Crypto’s purposes for a digital forex license and a cash transmission license in January 2019, stating on the time:
DFS has approved Robinhood Crypto to supply providers for getting, 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 basic (ETC), litecoin (LTC), polygon (MATIC), shiba inu (SHIB), solana (SOL), and uniswap (UNI).
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