Canadian financial regulator FINTRAC fined Binance $6 million CAD for money laundering violations. FINTRAC fined the cryptocurrency exchange $4.4 million for two alleged violations. FINTRAC says Binance is not registered as a foreign exchange services business. It also states that it did not report any virtual currency transactions exceeding $10,000 in a single transaction.
FINTRAC fined the giant cryptocurrency exchange for two violations!
Canada’s Financial Transactions and Reports Analysis Center (FINTRAC) has issued a regulatory action against cryptocurrency exchange giant Binance for allegedly violating money laundering rules. The regulator cited two breaches. The first of these is that Binance is not registered with FINTRAC as a foreign currency services business. Its second flaw is that it does not report a virtual currency transaction exceeding $10,000 in a single transaction. The US dollar equivalent of the fine corresponds to approximately 4.4 million dollars. FINTRAC announced the development with the following statement dated May 9:
Binance Holdings Limited, which also operates as Binance Holdings (IE) Ltd., Binance.com, Binance Global and Binance, has been identified as a foreign currency services business. Binance Holdings Limited was fined 6,002,000 CAD on May 7, 2024 for 2 violations. The violations were detected during a compliance activity in 2023.
Regulatory body also fined for lack of notification
FINTRAC is part of Canada’s financial intelligence unit. The regulator aims to detect and prevent money laundering, terrorist financing and other illegal behavior in Canada’s financial ecosystem. The regulator made the following statement regarding the second violation:
Using Blockchain analytics, FINTRAC found that Binance Holdings Limited detected receipt of an amount of $10,000 or more in virtual currency from a customer during a single transaction, with projected information occurring on 5,902 separate occasions during the period from June 1, 2021 to July 19, 2023. He determined that he did not report it together.
US sanctions decision
cryptokoin.comAs you follow from , in November 2023, the United States Department of Justice sought a $4 billion plea deal from Binance to end an investigation into alleged money laundering, fraud, and sanctions violations. The agreement also included the resignation of then-CEO Changpeng Zhao (CZ). It also required CZ to pay a penalty of $50 million. The jury found Changpeng Zhao guilty of violating anti-money laundering sanctions regulations. After this, the Judge sentenced him to four months in prison in April 2024.
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