5 Anti-Money Laundering Compliance Lessons from the Robinhood Fine


Reykjavik, Iceland -- (SBWIRE) -- 09/16/2022 -- Anti-money laundering compliance is a vital focus for organizations today. One recent example of how important this is becoming is the Robinhood fine. This is the action that was taken against the crypto arm of Robinhood Markets for alleged violations of anti-money laundering regulations. In total, the crypto asset trading firm was fined $30 million, a significant sum that is clearly designed to set a precedent when it comes to anti-money laundering compliance. Some of the highlighted failings by Robinhood present obvious lessons for other crypto assets firms that don't want to fall into the same practices and end up being financially penalized in the same way. It was established that Robinhood not only failed to invest significant enough resources in anti-money laundering compliance and preventing money laundering but also that there were serious lapses, for example in cybersecurity.

There are 5 key anti-money laundering compliance lessons that any business can learn from the Robinhood fine:

1. If the business is not filling many Suspicious Activity Reports (SAR) this is likely to attract regulatory scrutiny.
2. Arbitrary transaction thresholds for monitoring are a mistake.
3. The escalation process used for SARs must be well documented.
4. Relying on parent companies for compliance function doesn't work - every company should play a meaningful role in its own efforts.
5. Anti-money laundering compliance programmes should be separate for parent and subsidiary companies.

The action taken against Robinhood Markets shows that there is a lack of tolerance for crypto assets firms that don't have effective anti-money laundering measures in place. It also highlights in particular the fact that a new perspective is required in terms of the relationship between parent and subsidiary companies and anti-money laundering compliance. The work that Lucinity does to support businesses when it comes to anti-money laundering compliance is vital in ensuring that every firm is able to improve monitoring and measures that are in place to provide proactive protection. The Lucinity platform brings together human intelligence with artificial intelligence - the best of technology and human design - in order to create systems that work with companies and not against them. One key advantage is that this makes anti-money laundering compliance much simpler and easier to do, even in emerging sectors.

The platform designed by Lucinity combines a number of critical key components in anti-money laundering compliance. These include transaction monitoring, actor intelligence (to provide a holistic view of customers) and SAR manager to streamline reporting. Ever since the firm was established in 2018, Lucinity has continued to evolve what it means to ensure effective anti-money laundering compliance. In 2022, the firm has offices in New York, Brussels, London and Reykjavik and is focused on giving organizations effective tools to tackle money laundering crime on a global level.

About Lucinity
Lucinity is an anti-money laundering (AML) software developer on a mission to Make Money Good. Lucinity aims to solve productivity and efficiency issues for financial institutions through the company's 'Human AI' approach, a toolset that combines next-generation AI with human insights and expertise.

By leveraging AI, the AML software learns from every interaction and continues to improve indefinitely, providing fewer false positives and saving time. This is on top of its best-in-class interface and visualizations that put users first. Professionals can experience Lucinity's AML compliance solution, including transaction monitoring, through a free demo environment available on

Lucinity operates globally, with headquarters in Reykjavík, and serves customers ranging from Tier-1 banks to FinTechs.

Company Quote
Founder and CEO, Guðmundur Kristjánsson, comments, "Lucinity's unique experience in banking, compliance, regulation, and data science has helped us develop a new approach to tackling money laundering—harnessing the best of human intelligence and augmenting it with advanced AI.

Our simple-to-use systems work with analysts, not against them, complementing their skills and making them superheroes so they can take on financial crime, saving institutions time and money in the process.

We believe that by transforming AML, we can have a tremendous positive impact on society. Money laundering is a crime that fuels crime. That is why we set out on the mission of Making Money Good."

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About Lucinity
Lucinity is an AML software company, founded in 2018, with offices in Reykjavík, New York, London and Brussels. Using advanced AI systems, we help banks discover money laundering and really know their customers, more efficiently – to stop the funding of serious crime across the world.