The cryptocurrency-focused unit of the online brokerage firm, Robinhood crypto, has been fined $30 million for violations of anti-money-laundering, cybersecurity, and consumer protection rules, by the New York State Department of Financial Services (NYDFS).
Robinhood had an insufficiently staffed Bank Secrecy Act and anti-money laundering compliance program. The firm overlooked the regulatory updates required to its transaction monitoring system to match its growing size, transaction volume, and customer profiles.
Robinhood also will be required to retain an independent consultant to evaluate its compliance with NYDFS’s regulations and its remediation efforts.
Cheryl Crumpton, associate general counsel of litigation and regulatory enforcement at Robinhood, stated, “We are pleased the settlement in principle reached last year and previously disclosed in our public filings is now final.”
Crumpton further said, the firm still offers an accessible, lower-cost platform to buy and sell crypto and have made significant progress in building its legal, compliance, and cybersecurity programs.
Also read: NYDFS asks Crypto Firms to Use Blockchain Analytics Services
