Coinbase Reaches $100M Settlement with New York Regulator for AML Failure

American cryptocurrency exchange, Coinbase, has agreed to pay $100 million to settle lapses the New York Department of Financial Services (NYDFS) found in its anti-money laundering (AML), customer due diligence (CDD) and suspicious activity reporting systems.

This is as the state regulator said it found “significant failure” in the exchange’s compliance programme that resulted in the violation of the New York Banking Law and other regulations. NYDFS disclosed on Wednesday in a press statement that the exchange firm had agreed to pay a $50 million penalty to the State of New York and to also invest another $50 million in its compliance
Compliance

In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms…