$6M Binance fine imposed by Canadian watchdog

Binance fine overview: 

• Who: Canada’s anti-money laundering watchdog Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined Binance Holdings $6 million. 
• Why: FINTRAC claimed Binance failed to register with the agency as a foreign money service business and failed to report large virtual cryptocurrency transactions of $10,000 or more. 
• Where: Binance ceased operating in Canada in September. The crypto exchange platform currently operates in more than 100 countries. 

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined Binance Holdings $6 million for allegedly failing to register with it as a foreign money service business and failing to report large virtual cryptocurrency transactions. 

The monetary penalty was imposed earlier this month for Binance’s alleged non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations, according to FINTRAC. 

“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy,” FINTRAC Director and CEO Sarah Paquet said in a statement. “FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act.”

Binance had ‘several opportunities’ to properly register, FINTRAC argues

FINTRAC argued it gave Binance “several opportunities” to register with it as a money service business. It allegedly still failed to do so, and FINTRAC deemed the company non-compliant prior to it exiting the Canadian market in September, reports Law360. 

The anti-money laundering watchdog claimed Binance failed to report 5,902 transactions that exceeded $10,000 between June 2021 and July 2023, triggering requirements under anti-money laundering regulations. 

FINTRAC’s fine comes in the wake of Binance pleading guilty to multiple compliance-related failures in the U.S. — including, among other things, violations of the Bank Secrecy Act — resulting in settlements totaling $4.3 billion in fines, reports Law360. 

Former Binance CEO Changpeng Zhao also was reportedly sentenced to four months in prison last month after pleading guilty last November to a single charge of failing to put an adequate anti-money laundering program in place.

In previous news involving cryptocurrency, Canadian crypto exchange Coinsquare disclosed in November 2022 that it may have suffered a data breach that possibly exposed the personal information of its customers. 

Have you used Binance to purchase cryptocurrency? Let us know in the comments.

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