Binance Slapped with $4.3 Million Penalty by Canadian Regulator

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a substantial administrative monetary penalty on Binance.

On May 7, 2024, FINTRAC issued a penalty of $4.3 million for Binance’s non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.

Key points:

• Binance did not register as a foreign money services business with FINTRAC.
• The exchange did not report large virtual currency transactions of $10,000 or more in a single transaction, along with the prescribed information.
• FINTRAC emphasizes the importance of Canada’s anti-money laundering and anti-terrorism financing regimes in protecting Canadians. 
• The penalty follows Binance’s recent $4.3 billion fine by U.S. regulators and the sentencing of former CEO Changpeng “CZ” Zhao to four months in U.S. prison.
• Binance is also facing regulatory challenges in Nigeria.

Also read: Consensys CEO Joseph Lubin Accuses SEC Of Stifling Innovation Like Ethereum

FINTRAC CEO spoke on the decision against Binance

Sarah Paquet, Director and Chief Executive Officer of FINTRAC, emphasized the importance of Canada’s anti-money laundering and anti-terrorism financing regimes in safeguarding Canadians’ safety and economic security.

She stated, “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.”

Also read: Binance Fires Employee Who Discovered Evidence Of DWF Labs Market Manipulation

The penalty imposed on cryptocurrency exchange Binance Limited comes just six months after the exchange agreed to pay the United States regulators a $4.3 billion penalty.

Binance’s regulatory woes extend beyond North America, as the exchange is also battling financial regulators in Nigeria. In addition, the company has been accused of taking Nigerian naira and has been charged with money laundering and tax evasion in the African nation.