2 years ago
The New York State Department of Financial Services (NYDFS) imposed a $30 cardinal good connected the crypto trading portion of Robinhood connected Aug. 2.
The good is owed to an alleged usurpation of cybersecurity and anti-money laundering regulations.
According to the regulator, the Bank Secrecy Act and anti-money-laundering compliance programs astatine Robinhood were “insufficiently staffed.”
Adrienne A. Harris, the Superintendent of Financial Services, said:
As its concern grew, Robinhood Crypto failed to put the due resources and attraction to make and support a civilization of compliance—a nonaccomplishment that resulted successful important violations of the Department’s anti-money laundering and cybersecurity regulations
The NYDFS stated determination were captious failures successful the company’s cybersecurity programme that failed to code its “operational risks” fully.
Specific policies wrong the programme were not successful afloat compliance with respective provisions of the Department’s Cybersecurity and Virtual Currency Regulations.
Meanwhile, Robinhood is besides alleged to person failed successful compliance with user extortion requirements arsenic it did not person a dedicated telephone fig connected its website for user complaints and violated reporting requirements.
Besides the $30 cardinal fine, the institution volition besides person to prosecute an autarkic advisor to measure its compliance with NYDFS regulations. In addition, the advisor volition find if the company’s remedies to the “identified deficiencies and violations” are sufficient.
In 2021, Robinhood revealed that it expected a $30 cardinal good from the Department aft investigations successful 2020 showed that the institution grossly violated regulatory requirements.
The institution has paid regulators $100 cardinal successful fines successful the past 2 years. In 2021, Financial Industry Regulatory Authority (FINRA) fined it $70 cardinal for deficiency of user protection.
The station NYDFS slams Robinhood’s crypto portion with $30M fine appeared archetypal connected CryptoSlate.
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