Coinbase’s CB Payments Fined £3.5 Million by UK Regulator for AML Failures
On July 25th, CB Payments Ltd. (CBPL), a subsidiary of Coinbase, was fined £3.5 million by the UK Financial Conduct Authority (FCA) for providing services to high-risk customers.
The FCA stated that despite restrictions, CBPL provided electronic money services to 13,416 high-risk customers, with approximately 31% depositing around $24.9 million. These funds were used for withdrawals and then executed multiple cryptocurrency transactions totaling around $226 million through other Coinbase Group entities.
AML Compliance Failures
The FCA’s penalty comes as a result of CB Payments’ failure to adequately implement anti-money laundering controls and measures to prevent financial crime.
CBPL, which primarily acts as a gateway for customers to conduct cryptocurrency transactions within the Coinbase Group, was found to have shortcomings in its procedures for monitoring and scrutinizing high-risk customers.
While CBPL holds authorization from the FCA, it does not directly offer cryptocurrency services but facilitates transactions within the Coinbase ecosystem.
