Beautiful Virgin Islands

Wednesday, Feb 05, 2025

Robinhood Faces Likely AML Settlement, Says U.S. Demanded CEO's Phone Records

Robinhood Faces Likely AML Settlement, Says U.S. Demanded CEO's Phone Records

Robinhood Markets Inc., dogged by fines and regulatory scrutiny, revealed several new inquires from state and federal watchdogs as it seeks to sell shares in one of the year’s most anticipated public offerings.
Among the fresh disclosures made in its registration statement: U.S. prosecutors demanded access to Chief Executive Officer Vlad Tenev’s mobile phone, New York is poised to penalize the brokerage for alleged money-laundering lapses and brokerage regulators called it out for not reporting trades.

Robinhood has grown accustomed to such attention, having faced sanctions, probes and angry lawmakers as its evolved from a hot startup to a firm that’s become ubiquitous for its popular trading app.

The firm’s rapid growth has been fueled by the legions of customers it added during the Covid-19 pandemic and because it’s the go-to destination for investors who want to trade hot stocks like GameStop Corp. But those same factors are why Robinhood is in Washington’s crosshairs, and the firm cautioned potential shareholders Thursday that new rules and penalties could pose myriad risks to the company.

The firm estimates that it may end up paying at least $15 million to settle allegations from the New York Department of Financial Services that it didn’t do enough to prevent money laundering and cybersecurity breaches. Robinhood disclosed it has reached a preliminary settlement, which will require the company to appoint a monitor — setting up potential compliance headaches. The California Attorney General’s Office separately subpoenaed Robinhood in April, seeking documents about its trading platform and business operations.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
European Union Proposes Reforms to 1951 Refugee Convention
China's humanoid robots poised to transform everyday living and spiritual functions.
Changes in US tariffs on Chinese products could affect consumers more significantly than they do China.
How Innovations in China's Humanoid Robots Ignite Fierce Competition with the US
Germany Experiences 34% Decrease in Asylum Applications During Migration Discussion
Experts Challenge Conviction of UK Nurse Lucy Letby for Baby Killings
AfD Chief Alice Weidel Enhances Global Standing Through Meeting with Viktor Orban
Nigel Farage's Reform UK Party Leads Poll Amid Growing Public Demand for Change
Conor Murphy Steps Down as Northern Ireland Economy Minister to Join Irish Parliament
Over 1 Million Face Penalties After Missing HMRC Self-Assessment Tax Deadline
Scottish Government Denies Plans to Ban Cat Ownership Amid Controversy
Bridget Phillipson Urges Parents to Prioritize School Attendance Amid Rising Absence Rates
Keir Starmer Advocates for Stronger UK-EU Security Partnership in Brussels
Six English Councils Granted Permission to Raise Council Tax Bills Above Cap Amid Financial Struggles
Keir Starmer Faces Growing Backlash Over Potential Approval of Rosebank Oilfield
AI Consciousness Raises Ethical Concerns, Say Experts
Families Urge NHS England to Release Full Report on Nottingham Triple Homicide
NHS Initiates Largest AI Trial for Breast Cancer Detection
UK Tightens Regulations on Online Sales of Weight-Loss Injections
Gambling Ads Shown to Parents on Baby Monitor App, Raising Concerns
Ancient Irish Rainforests at Risk Due to the Growth of Monoculture Plantations
EU Leaders Deliberate on Defense Strategy Amid Rising U.S. Tensions
EU Leaders Convene Important Summit on Defense in Response to Rising Tensions
Trump Directs Establishment of U.S. Sovereign Wealth Fund, Considers TikTok Purchase
Britain Considers U.S. Gas Imports in Response to Possible Trump Tariffs
French Prime Minister Bayrou Confronts Several No-Confidence Votes Regarding the 2025 Budget
Shutdown of USAID Headquarters in Light of U.S. Government Reduction Initiatives
President Trump Launches Establishment of U.S. Sovereign Wealth Fund with Possible TikTok Purchase
Investigation Launched Following Viral Video of Bodybuilder's Airport Prank
Cooling Blankets: A Remedy for Those Who Sleep Hot or Just a Marketing Ploy?
Trump Wins Again as Canada Agrees to Strengthen Border Security
Trump Seeks Rare Minerals from Ukraine in Exchange for U.S. Support
EU Leaders Reach Consensus to Increase Defence Expenditure in Response to Growing Security Threats
UK Business Confidence Declines Amid Economic Uncertainty, Lloyds Survey Shows
Abhishek Sharma's Century Secures India a 4-1 T20 Series Win Over England
UK Prime Minister Keir Starmer will welcome German Chancellor Olaf Scholz for talks at Chequers.
Australian soccer sensation Sam Kerr confronts a racial abuse trial in London.
Lloyds and Barclays Bank Customers Experience Service Outages
Thames Water Seeks Court Approval for £3 Billion Rescue Plan Amid Crisis
UK Manufacturing Activity Contracts for Fourth Consecutive Month in January, PMI Shows
Ex-British Soldier Receives Sentence for Espionage on Behalf of Iran and Fleeing Custody
Emergency Crews Deployed on Santorini as Earthquake Swarm Raises Concerns
Wall Street Journal Criticizes Trump's Trade War with Canada and Mexico
Trump Freezes Tariffs on Mexico After Agreement on Border Security
Nearly 96% of New Cars Registered in Norway in January Were Electric
One Dead, Thousands Evacuated as Floods Hit North Queensland
Bart De Wever Appointed Belgium's New Prime Minister
Apple Abandons AR Glasses Project Amid Struggles with Technology and Market Demand
US Man Receives Photo Instead of Drill After Placing Order on Chinese Website
U.S. Clinical Trial Investigates Medication to Prolong Dogs' Lifespan
×