FINTRAC Imposes $4.4 Million Penalty on Binance for AML/CFT Noncompliance
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a hefty $4.4 million administrative penalty on Binance for failing to comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. This penalty comes after Binance failed to register as a foreign money services business and report digital currency transactions exceeding $10,000.
According to FINTRAC, Binance was fined 6,002,000 CAD for its noncompliance, which occurred during the period when the exchange was winding down its operations in Canada in 2023. Despite several opportunities to register with FINTRAC, Binance failed to meet the registration deadlines, leading to the imposition of the penalty.
This penalty is separate from the legal issues Binance is facing in other jurisdictions. In the United States, Binance settled with authorities and agreed to pay $4.3 billion in penalties, with former CEO Changpeng Zhao stepping down and pleading guilty to a felony charge. In Nigeria, two Binance executives were arrested for tax evasion and money laundering charges, with one of them reportedly escaping to Kenya.
The news of this penalty adds to the ongoing challenges faced by Binance in various countries, highlighting the importance of regulatory compliance in the cryptocurrency industry. Stay tuned for more updates on this developing story.
