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) announced Tuesday that Robinhood Crypto LLC (RHC) will 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 department’s Virtual Currency Regulation, Money Transmitter Regulation, Transaction Monitoring Regulation, and Cybersecurity Regulation, the DFS detailed.
Adrienne A. Harris, Superintendent of Financial Services:
As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance — a failure that resulted in significant violations of the Department’s anti-money laundering and cybersecurity regulations.
“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.
Robinhood Crypto must retain an independent consultant to evaluate its compliance with DFS regulations.
The New York State regulator approved Robinhood Crypto’s applications for a virtual currency license and a money transmission license in January 2019, stating at the time:
Robinhood Crypto has been authorized by DFS to sell, buy, and store seven virtual currencies including bitcoin, ether and bitcoin cash.
Robinhood provides commission-free cryptocurrency investing. It currently allows you to buy, sell, and track real-time crypto market data.
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