Anti-Money Laundering Issues, Robinhood Crypto to Pay Fine

Syed AhadWeb Editor

08th Jul, 2021. 01:11 am
Anti-Money Laundering

Anti-Money Laundering Issues Robinhood Crypto to Pay $15M fine Over Security to resolve a legal dispute with NYDFS (New York State Department of Financial Services) over charges related to crypto unit’s handling of cybersecurity and anti-money laundering.

The $15 million fine by New York State is the newest in a series of consequences to hit Robinhood. It also highlights the governing risk of operating in the crypto circle.

According to the filing, Robinhood set apart $10 million last year correlated to the NYDFS action and another $5 million in the first quarter of this year.

News of the NYDFS settlement comes a week after Robinhood approved to pay a $70 million fine—the biggest of its kind—to FINRA over outage and miscommunications that the federal regulator said formed “significant harm” to Robinhood clients.

As for the New York settlement, the filing offers few facts about the nature of the charges.

It only states that the NYDFS action narrates to Robinhood’s crypto division—known as RHC—and is “focused primarily on anti-money laundering and cybersecurity-related issues.”

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