Ripple Labs Fined for Violating Bank Secrecy Act

The United States Financial Crimes Enforement Network (FinCEN) released a statement today charging Ripple Labs Inc. with a $700,000 fine for willfully violating the requirements of the Bank Secrecy Act. XRP II, LLC a subsidiary of Ripple Labs Inc. operates Ripple Trade a website where users can trade various assets and currencies for XRP. FinCEN claims Ripple's subsidiary XRP II, LLC "failed to maintain an adequate anti-money laundering (AML) program" compliant with the BSA. This marks the first time a virtual currency exchanger has received a civil penalty from the United States government.

3 thoughts on “Ripple Labs Fined for Violating Bank Secrecy Act

  1. The worst part =On September 30, 2013, XRP II negotiated an approximately $250,000.00 transaction by email for a sale of XRP virtual currency with a third-party individual. XRP II provided that individual with a “know your customer” (“KYC”) form and asked that it be returned along with appropriate identification in order to move forward with the transaction. The individual replied that another source would provide the XRP virtual currency and did not “require anywhere near as much paperwork” and essentially threatened to go elsewhere. Within hours, XRP II agreed by email to dispense with its KYC requirement and move forward with the transaction. Open source information indicates that this individual, an investor in Ripple Labs, has a prior three-count federal felony conviction for dealing in, mailing, and storing explosive devices and had been sentenced to prison, see United States v. Roger Ver, CR 1-20127-JF (N.D. Cal.
    2002);

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>