Binance was fined $4.4 million by a Canadian authority for money laundering infractions.
A press release issued today by the Financial Transactions Reporting and Analysis Center of Canada (FINTRAC) describes two significant violations: failure to register as a foreign money services operator and failure to record large-scale virtual currency transactions.
Binance was fined $4.4
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Specifically, FINTRAC alleges that Binance failed to disclose transactions totaling $10,000 at 5,902 different points in time from June 2021 to July 2023. “Binance claims to be a foreign exchange service provider. According to regulators, on May 7, 2024, Binance Holdings Limited received an administrative penalty of $6,002,000 for two violations. Ta. The $4.4 million (or CAD $6 million) fine is the result of a 2023 compliance inspection.
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Canada’s financial intelligence unit, FINTRAC, works to stop financial crimes such as money laundering. It determined that Binance’s oversight of neglecting to record transactions involving virtual currencies was essential for financial system transparency using blockchain analytics.
This comes after Binance was subject to similar regulatory scrutiny in the US. The U.S. Department of Justice and the exchange came to a plea agreement in November 2023 that included a $4 billion payment for alleged sanctions and money laundering offenses.
As to the deal, Changpeng Zhao, the founder and CEO of Binance at the time, had to resign and pay a $50 million penalty. Zhao pleaded guilty to breaking anti-money laundering laws and was later sentenced to four months in prison.
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