Binance Fined $4.4M by Canada's FINTRAC Over Regulatory Non-Compliance
Summary:
FINTRAC, Canada's financial intelligence agency, has fined Binance $4.4 million for non-compliance with Anti-Money Laundering and Countering the Financing of Terrorism regulations. Binance failed to register as an overseas money services business and report digital transactions exceeding $10,000. The fine comes amidst other legal challenges Binance is dealing with internationally, including a $4.3 billion penalty in the United States and a tax evasion case in Nigeria.
Canada's financial intelligence agency, FINTRAC, has imposed a penalty of $4.4 million on Binance for its failure to register and report high-value digital transactions. The notification released on May 9 stated that Binance Holdings Limited was found non-compliant with the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) rules. The regulator highlighted Binance's oversight in not registering as an overseas money services business and not reporting digital transactions surpassing $10,000. The regulator imposed a fine of about $4.4 million (6,002,000 CAD) on Binance. The acts that resulted in the penalty took place in 2023 during the period Binance was ceasing its operations in Canada. Binance did not respond to Cointelegraph's request for comments at the time of publication (Source: FINTRAC).
In May 2023, Binance had announced its decision to exit the Canadian market due to regulatory challenges. Between June 2021 and July 2023, FINTRAC recorded 5,902 individual digital transactions amounting to $10,000 or more on the exchange. “Despite numerous opportunities to register as an FMSB with FINTRAC, Binance Holdings Limited failed to complete its registration within the stipulated time frames,” stated FINTRAC. The agency further clarified that Binance was expected to be registered with FINTRAC until it officially stopped all its activities in Canada on September 25th, 2023. Until then, Binance was in contravention of its registration obligations.
This $4.4 million penalty is separate from other legal confrontations Binance is dealing with in other regions. In November 2023, the firm reached a settlement with the US authorities, which involved a payment of $4.3 billion in penalties. Changpeng Zhao, the then CEO, stepped down from his position and admitted to a felony charge as part of the agreement, leading to a four-month prison sentence.
Additionally, in Nigeria, two Binance leaders were detained in February on accusations of tax evasion and money laundering. One individual reportedly fled to Kenya, but Interpol is prepared to send him back to Nigeria for the court proceedings scheduled to resume on May 17.
Published At
5/9/2024 9:45:00 PM
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