Canada Fines Binance Over $4 Million For Violating Money Laundering Regulations

Canada’s anti-money laundering agency has imposed a substantial fine of nearly CAD 6 million (approximately $ 4.38 million) on cryptocurrency exchange Binance for breaching money laundering and terrorist financing regulations.

This development comes amidst Binance’s ongoing dispute with the Nigerian government over alleged money laundering charges amounting to USD 35 million.

According to Reuters, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) found Binance guilty of failing to register as a foreign money services business with the intelligence agency, despite multiple deadlines.

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Furthermore, Binance, which ceased operations in Canada last year, neglected to report receiving virtual currency worth CAD 10,000 (approximately GBP 6,000) or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023.

This latest development comes weeks after Binance’s former CEO, Changpeng Zhao, was sentenced to four months in prison after pleading guilty to violating US laws against money laundering.

Binance agreed to a substantial penalty of USD 4.32 billion, and Zhao paid a criminal fine of USD 50 million plus an additional USD 50 million to the US Commodity Futures Trading Commission.

Binance’s violation of Canadian regulations has resulted in a significant financial penalty, highlighting the importance of compliance with anti-money laundering and terrorist financing laws. The cryptocurrency exchange’s failure to register with FINTRAC and report large virtual currency transactions has led to this substantial fine.

The Canadian government’s crackdown on money laundering and terrorist financing is evident in this latest enforcement action against Binance. The agency’s efforts aim to prevent the misuse of cryptocurrencies and other financial instruments for illicit activities.

In conclusion, Binance’s fine and the criminal charges against its former CEO serve as a warning to cryptocurrency exchanges and other financial institutions to prioritize compliance with anti-money laundering and terrorist financing regulations.

The Canadian government’s actions demonstrate its commitment to preventing financial crimes and maintaining the integrity of the financial system.