FINTRAC has imposed a significant fine on cryptocurrency exchange Binance for breaching anti-money laundering regulations. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) highlighted two main violations in a recent announcement: failure to register as a foreign money services business and failure to report large transactions in virtual currency. According to FINTRAC, Binance did not report transactions over $10,000 on 5,902 occasions between June 2021 and July 2023.

Binance was found to be in violation of anti-money laundering regulations, resulting in an administrative monetary penalty of $6,002,000 being imposed on Binance Holdings Limited on May 7, 2024. The penalty of $4.4 million, or 6 million CAD, was a result of compliance checks conducted in 2023.

FINTRAC, Canada’s financial intelligence unit, uses blockchain analytics to identify violations like Binance’s failure to report virtual currency transactions. This oversight is seen as crucial for maintaining transparency in the financial system and preventing money laundering and financial crimes.

This regulatory action comes on the heels of similar scrutiny Binance faced in the United States. In November 2023, the U.S. Department of Justice reached a settlement with Binance, involving a $4 billion fine for alleged money laundering and sanctions violations. As part of the agreement, Binance’s founder and then-CEO Changpeng Zhao stepped down and paid a $50 million fine. Zhao also received a four-month prison sentence after admitting to violating anti-money laundering regulations.

For more information, you can read about a Binance employee accusing DWF Labs of market manipulation.

Post Views: 10