Robinhood Markets' (NASDAQ:HOOD) crypto unit agreed to pay a $30M penalty to New York State to resolve alleged violations of anti-money laundering reporting rules and cybersecurity regulations, the New York Department of Financial Services said Tuesday in a statement. The settlement was made final after the parties reached a settlement in principle last summer."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," said New York Superintendent of Financial Services Adrienne A. Harris.The DFS said its supervisory examination and enforcement investigation found that Robinhood (HOOD) Crypto's Bank Secrecy Act/Anti-Money Laundering compliance program was inadequately staffed, failed to switch from a manual transaction monitoring system that was inadequate for RHC's size and transaction volumes in a timely manner, and didn't devote enough resources to adequately address risks specific to RHC.Cheryl Crumpton, associate general counsel of Litigation and Regulatory Enforcement at Robinhood Markets (HOOD) said in an email to Seeking Alpha, "We are pleased the settlement in principle reached last year and previously disclosed in our public filings is now final. We have made significant progress building industry-leading legal, com...
