Canada Fines Binance $4.4 Million for Violating Anti-Money Laundering Rules 

Canada recently slapped a fine on Binance, the world’s largest crypto exchange, for breaking the nation’s anti-money laundering regulations in the past year. According to a public announcement, the federal government stated that the crypto exchange firm didn’t adhere to regulations and registrations concerning its operations as a foreign money services business (FMSB).

Penalty Imposed

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) disclosed that Binance Holdings Limited faced an administrative monetary penalty of $6,002,000 CAD on May 7, 2024. This penalty was for committing two violations uncovered during a compliance check in 2023.

Apart from failing to register as an FMSB, the exchange also neglected to report large virtual currency transactions exceeding $10,000 CAD. Approximately 5,902 such transactions between June 1, 2021, and July 19, 2023, were improperly reported by Binance.

This fine follows closely on the heels of Binance’s co-founder and former CEO, Changpeng Zhao (CZ), receiving a four-month prison sentence for insufficiently implementing know-your-customer (KYC) and anti-money laundering (AML) protocols at the exchange.

Binance’s Previous Settlement

In November, CZ and his company admitted to AML violations, agreeing to pay a separate $50 million and $4 billion fine as part of a settlement with the US Department of Justice.

Binance faces further legal challenges, including a lawsuit from the Securities and Exchange Commission (SEC) for allegedly listing over a dozen securities on its platform.

The crypto exchange has already ceased operations in Canada due to regulatory hurdles. In contrast, competitor Coinbase recently secured full licensing to operate in the country, becoming the first foreign exchange to do so.