The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has fined Binance, a popular cryptocurrency platform, “$6 million for violating the country’s money laundering and terrorist financing laws”.
According to international media, the fine is valued in
Canadian dollars, bringing the total amount to USD4.38 million when
converted.
In a recent statement on
its website, FINTRAC said Binance had failed to register as a foreign money
services business with the intelligence body.
The anti-money laundering agency said the cryptocurrency
firm also failed to report large virtual currency transactions worth $10,000 or
more.
“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.”
Adjudged to be the largest cryptocurrency exchange by
trading volume, Binance has been the subject of regulatory sanctions in some
parts of the world.
On April 30, Changpeng Zhao, the founder of Binance, was
sentenced to four months in prison for money laundering, unlicensed money
transmitting and violations in Seattle, United States (US).
According to US officials, Zhao intentionally turned a blind
eye to transactions that financed terrorism, the illegal drug trade, and child
sex abuse.
Earlier in February, a federal judge in the US approved a
plea deal by Binance, requiring the cryptocurrency exchange to pay over $4.3
billion in fines and reparations.
Binance is also under investigation for illicit operations
and foreign exchange (FX) rate manipulation in Nigeria.
The firm, and two of its top officials — Nadeem Anjarwalla,
Binance’s regional manager for Africa, and Tigran Gambaryan, the company’s head
of financial crime compliance — were charged with tax evasion and money
laundering by the federal government.
The duo were arrested and detained on February 28 — but
Anjarwalla escaped from custody in March.
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