Binance finds itself in compliance troubles again, this time in Canada.
The country’s financial agency has issued the cryptocurrency exchange with an administrative monetary penalty of CA$6m ($4.3m USD) over failing to comply with administrative measures.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) found that Binance had failed to register with the agency as a foreign money services business. The administrative penalty was then handed to the exchange on 7 May 2024.
Binance was non-complaint with FINTRAC’s Proceeds of Crime and Terrorist Financing Act and other associated regulations. This requires financial entities, as well as casinos and real estate brokers, to file certain documents to the regulator.
These documents and information include elements such as electronic payment transfers to alert FINTRAC of any suspicious activity, especially in the case of large irregular transactions.
FINTRAC has imposed more than 140 penalties across a range of business sectors since it received legislative authority in 2008.
Sarah Paquet, Director and CEO of FINTRAC, commented on the Binance penalty: “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 will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
This latest enforcement action builds on Binance’s compliance woes over the last several months. The world’s largest crypto exchange agreed a $4.3bn settlement with the US government in November over breaking the Bank Secrecy Act.
The substantial penalty was due to Binance’s US arm, Binance.US, being non-compliant with AML and KYC guidelines, and resulted in its former CEO, Changpeng Zhao, resigning from his position.
Zhao recently was sentenced to four months in prison, significantly less time than the 36 month sentence the US Department of Justice was lobbying for.
