Binance, a well-known cryptocurrency platform, has been fined $6 million by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for breaching Canada’s money laundering and terrorist financing laws.
Gatekeepers News that the penalty is denominated in Canadian dollars, which equates to USD4.38 million when converted. According to FINTRAC, the exchange failed to register as a foreign money services business with the intelligence agency, and did not report virtual currency transactions worth $10,000 or more, resulting in a violation of anti-money laundering regulations.
“FINTRAC announced today [Thursday] that it has imposed an administrative monetary penalty on Binance Holdings Limited, also operating as Binance Holdings (IE) Ltd., Binance.com, Binance Global and Binance,” the statement reads.
“This foreign money services business was imposed an administrative monetary penalty of $6,002,000 on May 7, 2024 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
“Binance Holdings Limited was found to have committed the following administrative violations: Failure to register with FINTRAC as a foreign money services business; and failure to report large virtual currency transactions of $10,000 or more in the course of a single transaction, together with the prescribed information.”
Commenting on the matter, Sarah Paquet, director and chief executive officer of FINTRAC, said the country’s anti-money laundering and anti-terrorist financing regime is in place to protect the safety of Canadians and the security of the nation’s economy.
“FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
Binance has faced a series of regulatory sanctions in various countries. In the United States, founder Changpeng Zhao was recently sentenced to four months in prison for multiple charges, including money laundering, unlicensed money transmitting, and violations.
US authorities accused Zhao of neglecting transactions that funded illegal activities such as terrorism, drug trade, and child sex abuse. In February, Binance agreed to pay over $4.3 billion in fines and reparations to settle a case, which was approved by a federal judge.
The company is also under investigation in Nigeria for alleged foreign exchange rate manipulation and illicit operations.
In addition, Binance’s Regional Manager for Africa and Head of Financial Crime Compliance were charged with tax evasion and money laundering by the Nigerian government.
While both individuals were arrested and detained in February, one of them, Nadeem Anjarwalla, escaped from custody in March.
