Robinhood Crypto fined $30M for AML, cybersecurity failures
By 
Aaron Nicodemus2022-08-02T18:27:00
Robinhood Crypto (RHC) agreed to pay a $30 million fine to the New York State Department of Financial Services (NYDFS) for “significant failures” in its Bank Secrecy Act/anti-money laundering (BSA/AML) and cybersecurity compliance programs.
The NYDFS announced Tuesday that over several years, Robinhood’s BSA/AML program was inadequately staffed; failed to transition from a manual transaction monitoring system unfit for the firm’s size, customer profiles, and transaction volumes; and did not devote sufficient resources to addressing risks unique to the company.
Similarly, Robinhood’s cybersecurity program did not adequately address the risks of a potential breach and was not in full compliance with the NYDFS’s cybersecurity regulations.
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