As a researcher with a background in financial regulation, I find FINTRAC’s decision to impose a $4.4 million penalty on Binance for noncompliance with AML and CFT regulations a significant development. Binance, one of the largest cryptocurrency exchanges globally, failed to register as a foreign money services business and report digital currency transactions exceeding $10,000, as required by Canadian law.
Canada’s Financial Transactions and Reporting Center (FINTRAC) revealed that Binance would be subjected to a CAD 4.4 million penalty for neglecting to register and report significant digital asset transactions.
On May 9, FINTRAC announced it had imposed penalties on Binance Holdings Limited due to non-compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The regulatory body stated that Binance neglected to register as a foreign money services business and report digital currency transactions surpassing $10,000.
In 2023, while Binance was in the process of wrapping up its Canadian operations, FINTRAC identified certain activities that led to a CAD 6,002,000 ($4.4 million) penalty against the crypto exchange. FINTRAC made this announcement without receiving any comment from Binance regarding the matter at the time of publication. CryptoMoon attempted to contact Binance for their perspective but did not receive a response.
In May 2023, Binance disclosed its intention to withdraw from the Canadian market, stating regulatory issues as the reason. Between June 2021 and July 2023, over 5,900 transactions worth $10,000 or more in cryptocurrency were identified by FINTRAC on Binance’s platform.
“FINTRAC stated that Binance Holdings Limited failed to register as a Reporting Entity with FINTRAC by the given deadlines despite being granted multiple chances to do so. It is important to mention that Binance Holdings Limited, which operated in Canada until September 25th, 2023, was considered an Financial and Money Services Business (FMSB) and was obligated to register with FINTRAC. Consequently, they were in breach of registration regulations prior to their Canadian exit.”
The $4.4 million separate penalty is distinct from Binance’s legal issues in other regions. In November 2023, the firm reached an agreement with US authorities, resulting in a $4.3 billion fine. Changpeng Zhao relinquished his role as CEO and confessed to one felony charge as part of the settlement. Subsequently, he served a four-month prison term.
As an analyst, I would rephrase it as follows: In Nigeria, two Binance executives were apprehended in February and are currently facing allegations of tax evasion and money laundering. One of the individuals is reportedly at large, having fled to Kenya; however, Interpol has indicated their readiness to facilitate his extradition back to Nigeria. The legal proceedings against both men are set to continue on May 17 in Nigerian courts.
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2024-05-09 21:56