Robinhood To Pay $15M Fine Following an Anti-Money Laundering Probe

Robinhood will pay a New York regulator a $15 million settlement following an anti-money laundering probe.

The American financial services company, known for offering commission-free trades of stocks and exchange-traded funds got itself into some trouble.

In the filings with the Securities and Exchange Commission (SEC) on July 1, 2021, Robinhood revealed that they got fines over anti-money laundering and cybersecurity practices.

According to filings with the SEC, Robinhood will have to pay a $15 million penalty. Also, the firm has to pay extra for a monitor who will warrant that the firm adheres to anti-money laundering and cybersecurity systems.

However, this is not the first time Robinhood gets itself into trouble. Last month, the U.S. Financial Industry Regulatory Authority (FINRA) ordered Robinhood to pay about $70 million to users. This is based on the outcomes of an investigation into the stock and crypto trading app.

According to Regulators, the trading app should pay restoration to users, including the 20-year-old who committed suicide after a negative error on his balance.

More so, FINRA said it had ordered Robinhood to pay $57 million in fines to the regulatory body. And also, to give about $12.6 million in return to some customers.

As per the FINRA report, the trading platform caused “widespread and significant harm” to many users. Also, it displayed “systemic supervisory failures” from September 2016.