- Canada’s FINTRAC levied a $4.4 million penalty on Binance.
- Binance failed to comply with AML laws, claims FINTRAC.
- The regulator also found significant gaps in Binance’s compliance procedures.
Canada’s financial crime watchdog, the Financial Transactions and Reports Analysis Centre (FINTRAC), has fined Binance, the world’s largest cryptocurrency exchange by trading volume, a hefty penalty of 6 million Canadian dollars, equivalent to about $4.4 million USD.
As per a report from Bloomberg, this fine comes as a consequence of Binance’s failure to comply with laws related to money laundering and terrorist financing.
Fintrac identified several administrative violations, including Binance’s failure to register as a foreign money-services business and its alleged failure to report large virtual currency transactions of C$10,000 or more, along with the required information. These violations point to significant gaps in Binance’s compliance procedures.
This latest penalty adds to Binance’s growing list of regulatory and legal issues. The exchange has been under scrutiny by various regulatory bodies, including the U.S. Securities and Exchange Commission (SEC).
Last year, Binance faced accusations of prioritizing profits over user protection. In November, Binance pleaded guilty to violating U.S. anti-money-laundering regulations, resulting in a $4.3 billion fine. Additionally, the SEC has filed a civil lawsuit against Binance.
It is important to note that administrative penalties like the one imposed on Binance are aimed at encouraging businesses to change their behavior rather than being purely punitive. These penalties are intended to drive improvements in compliance practices across the industry.
Under Canada’s Proceeds of Crime and Terrorist Financing Act, regulatory bodies like FINTRAC have the authority to issue such penalties in order to promote a more compliant and secure financial environment.
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