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Ripple Labs Inc. fined in First Civil Enforcement Action Against a Virtual Currency Exchanger

Ripple Labs Inc. fined in First Civil Enforcement Action Against a Virtual Currency Exchanger

The Financial Crimes Enforcement Network (FinCEN), working in coordination with the U.S. Attorney’s Office for the Northern District of California, assessed a $700,000 civil money penalty against Ripple Labs Inc. and its wholly-owned subsidiary, XRP II, LLC (formerly known as XRP Fund II, LLC).

"Ripple Labs willfully violated several requirements of the Bank Secrecy Act (BSA) by acting as a money services business (MSB) and selling its virtual currency, known as XRP, without registering with FinCEN, and by failing to implement and maintain an adequate anti-money laundering (AML) program designed to protect its products from use by money launderers or terrorist financiers. XRP II later assumed Ripple Labs’ functions of selling virtual currency and acting as an MSB; however, like its parent company, XRP II willfully violated the BSA by failing to implement an effective AML program, and by failing to report suspicious activity related to several financial transactions". (Source: The US Department of the Treasury Site)  Access full article: Click here

Additional links:

Statement of Facts and Violations
Remedial Framework Agreement

 

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