Coinbase agreed a comparison of over $ 100 million with the New York financial supervision for violations of money laundering -
Coinbase agreed a comparison of over $ 100 million with the New York financial supervision for violations of money laundering -
Coinbase has agreed to pay the New York finance Ministry (NYDFS) a comparison of $ 100 million, as can be seen from a consent accident signed by NYDFS superintendent Adrienne Harris on January 4, 2023. Inadequate.
The New York supervisory authority impose a fine of $ 100 million against Coinbase due to compliance problems in combating money laundering
The crypto base and folk bank Coinbase (Nasdaq: coin ) has with New York's top financial supervisory authority NYDFS at a comparison of 100 million US dollars agreed because in 2020 and 2021 it did not conduct any reasonable controls to combat money laundering. Background reviews for money laundering (AML).
"Coinbase was lacking in sufficient personnel, resources and tools to keep up with these warnings, and the residues quickly grew to an unmanageable level," says the approval order Detailed details of superintentent Adrienne Harris signed. "By the end of 2021, Coinbase had a gap of unchecked transaction monitoring warnings to more than 100,000 (many months old), and the deficit to customers who required increased duty of care exceeded 14,000."
The compliance examination began in 2020 and the alleged lack of background reviews began in 2018. At the time, Coinbase was ready to hire an independent examiner to ensure that the AML and Know-Your-Customer (KYC) guidelines were adhered to. However, compliance problems remained, and the New York supervisory authority decided to take measures in 2021. "We have expressed ourselves very openly with regard to illegal financing in space. For this reason, our frame keeps crypto companies on the same standard as for banks," Superintendent Harris said .
In the meantime, the Coinbase share, coin, jumped on the news rather than a decline, as the shares rose by 6.74 % on Wednesday. Coinbase also replied to compare in the next two years Compliance programs of $ 50 million committed ”. The blog post message of the stock exchange about the NYDFS agreement continued:
We consider this resolution as a decisive step in our commitment to continuous improvement, our commitment with important regulatory authorities and our pursuit of more compliance in the crypto area-for ourselves and others.
What do you think of the agreement of Coinbase with the New York financial supervision due to a lack of compliance controls? Let us know your opinion on this topic in the comment area below.
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