The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is pursuing regulatory action against Binance Holdings Limited for allegedly breaking money laundering regulations.
Binance faced a $6,002,000 administrative penalty on May 7, 2024, for two violations discovered during a 2023 compliance review.
In a release dated May 9, FINTRAC wrote, “Binance Holdings Limited, also operating as Binance Holdings (IE) Ltd., Binance.com, Binance Global, and Binance, is determined to be a foreign money services business.”
FINTRAC’s regulatory action addresses allegations of Binance’s non-compliance with anti-money laundering regulations and reporting duties. This includes some possible violations, such as not registering with FINTRAC as an FMSB, as required under the Terrorist Financing and Proceeds of Crime (Money Laundering) Act.
Furthermore, Binance is accused of failing to record significant virtual currency transactions exceeding $10,000. If such transactions go unreported, there’s a good chance they’ll help money laundering and other illegal acts.
The regulator said that through blockchain analytics, FINTRAC determined that Binance Holdings Limited neglected to report the receipt of virtual currency amounts totaling $10,000 or more from a client in a single transaction. This occurred 5,902 times between June 1, 2021, and July 19, 2023.
Canada’s financial intelligence unit includes FINTRAC. In Canada’s financial ecosystem, the regulator seeks to identify and stop money laundering, financing of terrorism, and other illegal activity.
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