Canadian Regulator Fines Binance $4.4M for AML and CFT Violations

Canadian regulator FINTRAC fined Binance $4.4 million for violations related to anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. FINTRAC reported that between June 2021 and July 2023, Binance facilitated 5,902 separate transactions of $10,000 or more in cryptocurrency and failed to register with the regulator as a foreign money services business (FMSB) and report these transactions. The penalty was imposed on Binance Holdings Limited for noncompliance with AML and CFT regulations, with FINTRAC emphasizing that Binance had ample opportunities to register with them but failed to do so by the given deadlines. This penalty was separate from other legal issues Binance faced in other jurisdictions, such as the $4.3 billion settlement with U.S. authorities in November 2023, which led to CEO Changpeng Zhao stepping down and pleading guilty to a felony charge. Additionally, two Binance executives in Nigeria were arrested in February on charges of tax evasion and money laundering, with one reportedly escaping to Kenya. Interpol indicated readiness to extradite the fugitive executive back to Nigeria, where court proceedings are set to resume on May 17.