According to Fincen, in its early days Ripple Labs functioned as an unregistered money service business and neglected to comply with anti-money laundering regulations. The civil money penalty against Ripple Labs and its subsidiary, XRP Fund II, was jointly issued by Fincen and the US Attorneys Office for the Northern District of California.
As part of the settlement, Ripple Labs and XRP II have agreed to take measures to improve AML compliance, including limiting XRP transactions to registered money service businesses and hiring independent auditors to review the companies BSA compliance every two years through 2020.
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