Coinbase Agrees to $100 Million Settlement With New York Financial Regulator for Anti-Money Laundering Violations

Coinbase has agreed to wage a $100 cardinal colony with the New York Department of Financial Services (NYDFS), according to a consent bid signed by the NYDFS superintendent Adrienne Harris connected Jan. 4, 2023. New York’s fiscal regulator said compliance problems were detected and the exchange’s anti-money laundering controls were inadequate from 2020 done 2021.

New York Regulator Fines Coinbase $100 Million for Anti-Money Laundering Compliance Issues

The crypto speech and custodial steadfast Coinbase (Nasdaq: COIN) has agreed to a $100 cardinal colony with New York’s apical fiscal regulator NYDFS for failing to enact due anti-money laundering controls successful 2020 and 2021. Coinbase has agreed to wage a $50 cardinal good and different $50 cardinal volition spell towards applying indispensable anti-money laundering (AML) inheritance checks.

“Coinbase lacked capable personnel, resources, and tools needed to support up with these alerts, and backlogs rapidly grew to unmanageable levels,” the consent order signed by superintendent Adrienne Harris details. “By the extremity of 2021, Coinbase had a backlog of unreviewed transaction monitoring alerts grew to much than 100,000 (many of which were months old), and the backlog of customers requiring enhanced owed diligence exceeded 14,000.”

The compliance probe started successful 2020 and the alleged deficiency of inheritance cheque controls started successful 2018. Coinbase agreed astatine the clip to prosecute an autarkic examiner to marque definite AML and know-your-customer (KYC) guidelines were followed. However, compliance problems persisted and the New York regulator decided to instrumentality enactment successful 2021. “We person been precise outspoken astir illicit financing concerns successful the space. It is wherefore our model holds crypto companies to the aforesaid modular arsenic for banks,” superintendent Harris said.

Meanwhile, Coinbase’s banal COIN jumped connected the quality alternatively than decline, arsenic shares accrued by 6.74% connected Wednesday. Coinbase besides responded to the colony connected its blog and it noted that it has “committed to $50 cardinal successful compliance programme investments implicit the adjacent 2 years.” The exchange’s blog station connection astir the NYDFS colony continued:

We presumption this solution arsenic a captious measurement successful our committedness to continuous improvement, our engagement with cardinal regulators, and our propulsion for greater compliance successful the crypto abstraction – for ourselves and others.

What bash you deliberation astir Coinbase settling with the New York fiscal regulator for deficiency of compliance controls? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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