Coinbase Fined €21.5M by Irish Central Bank Over AML Lapse
Coinbase faces €21.5M fine in Ireland over 2021–22 AML monitoring failure. The issue affected €13M in transactions.
- Coinbase failed to monitor some transactions in 2021–22.
- Central Bank of Ireland fined it €21.5 million.
- Coinbase says issue was fixed and AML controls improved.
Coinbase Europe Limited has been fined €21.5 million by the Central Bank of Ireland (CBI) after a technical error in its transaction monitoring system left some transactions inadequately screened between July 2021 and September 2022. The lapse was traced back to a coding issue that caused a portion of customer activity to bypass Coinbase’s anti-money laundering (AML) controls.
This failure meant that thousands of transactions were not properly reviewed for suspicious activity. Once the issue was identified, Coinbase filed approximately 2,700 Suspicious Transaction Reports (STRs) with Irish authorities, covering €13 million worth of transactions.
Swift Response and Strengthened Controls
According to Coinbase, the error was resolved within weeks of discovery. The company emphasized that the incident did not result in financial loss to customers and that no evidence of criminal activity tied to the unscreened transactions has been reported.
Coinbase stated that it has since bolstered its AML framework, enhancing its system to prevent similar issues in the future. The Central Bank acknowledged the steps taken but emphasized that firms operating in the financial sector must maintain continuous oversight of compliance systems, particularly when dealing with digital assets.
Ireland’s Role as a Regulatory Hub
Ireland has become a major regulatory base for Coinbase’s European operations. This fine is among the most significant AML-related enforcement actions in the country’s crypto sector to date. The CBI reiterated its commitment to holding crypto firms to high compliance standards, especially as the industry continues to evolve and expand across Europe.
This incident serves as a reminder to all crypto firms: technical errors can have major regulatory consequences, and robust compliance measures are not optional — they are essential.
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