Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed an administrative monetary penalty of $4.4 million on cryptocurrency exchange Binance.
FINTRAC informed Binance Holdings Limited on May 9 that penalties had been levied in retaliation for the company’s failure to adhere to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
According to the regulator’s findings, Binance needed to file reports on digital currency transactions surpassing $10,000 and could not register as a foreign money services business.
FINTRAC reported that it had fined Binance 6,002,000 CAD, or approximately $4.4 million as of publication. According to the regulator, Binance committed the violations that resulted in the sanction in 2023 as the company was winding down its operations in Canada.
Due to regulatory concerns, Binance announced in May 2023 that it intended to exit the Canadian market. From June 2021 to July 2023, FINTRAC documented 5,902 distinct cryptocurrency transactions costing $10,000 or more on the exchange.
“Despite having multiple opportunities to register as an FMSB with FINTRAC, Binance Holdings Limited failed to do so by the specified deadlines,” FINTRAC stated.
“It is important to acknowledge that Binance Holdings Limited was classified as an FMSB and was obligated to maintain FINTRAC registration until its official cessation of operations in Canada on September 25, 2023. “Binance Holdings Limited had breached its registration obligations until that day.”
The fine of $4.4 million was distinct from any legal complications that Binance has encountered or is presently confronting in other jurisdictions. The US authorities settled with the company in November 2023, mandating a penalty payment of $4.3 billion.
Changpeng Zhao resigned as CEO in exchange for the agreement and pleaded guilty to a single felony charge. As a result, he received a four-month prison sentence.
February saw the apprehension of two Binance executives in Nigeria on suspicion of money laundering and tax evasion. Despite reports indicating that one of the men fled to Kenya, Interpol stated its willingness to extradite him to Nigeria, where legal proceedings are scheduled to recommence on May 17.
