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Robinhood Crypto Unit Faces $30M Fine for AML, Cybersecurity Violations

By  |  August 8, 2022

The New York State Department of Financial Services (NYDFS) has fined the cryptocurrency trading unit of online brokerage Robinhood $30 million for alleged violations of anti-money laundering (AML) and cybersecurity regulations, The Wall Street Journal (WSJ) reported Tuesday (Aug. 2).

The New York State financial regulator’s first crypto enforcement action said Robinhood Crypto “failed to maintain and certify compliant anti-money-laundering and cybersecurity programs,” per the report. Robinhood must also retain an independent consultant to evaluate its compliance.

Robinhood Crypto was found to have triggered “significant failures” based on the NYDFS’ supervisory exam and through a later enforcement investigation, the report stated, resulting in “shortcomings in the company’s management and oversight of its compliance programs,” including failures to maintain a culture of compliance or allocate resources to the programs, especially as the company grew quickly.

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