Canadian Regulatory Agency Fines $4.4 Million for CFT and AML Violations

Canadian Regulatory Agency Fines $4.4 Million for CFT and AML Violations

Binance is facing regulatory troubles. FINTRAC, the financial regulatory service provider in Canada, recently reported that the firm was involved in allowing 5,902 transactions between June 2021 to July 2023 that were unreported. Furthermore, the regulator charged the firm for continuing to operate without a license.

Binance Fails to Report Transactions

The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) recently declared that it was imposing a fine of $4.4 million on the exchange on account of its failure to register and report sizeable transactions.

The agency issued a notification against Binance on 9th May noting that it has imposed financial penalties on Binance Holdings Limited for non-compliance with AML and Countering the Financing of Terrorism checks.

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As per the regulatory agency, Binance has failed to register as a foreign money service business and reported digital currency transactions that are bigger than $10,000.

The FINTRAC also stated that Binance has been fined to pay 6,002,000 CAD or around $4.4 million at press time. The regulatory agency remarked that Binance actions taking place in 2023 have led to the fines and winding down of the operations in Canada.

Binance to Face Legal Troubles in Canada

The regulators in Canada told the media that Binance was planning to leave the local jurisdiction in 2023 on account of regulatory pushback. However, FINTRAC ended up trading total of 5902 transactions that the firm refrained from sharing with the regulators.

At the same time, regulators maintained that Binance Holdings Limited was given several chances to apply for registration with FINTRAC as FMSB.

However, the firm failed to comply with regulatory requirements before the finalized deadline. The regulators noticed that before Binance Holdings Limited was considered FMSB for the duration of 2023.

However, on 25th September last year, the firm seized all operations in Canada, and from that the point, all the activities of the firm were considered as violation of an unregistered enterprise.

The award of $4.4 million in financial penalties is excluded from the legal troubles of Binance that it is facing in other jurisdictions. In November 2023, the exchange finalized a settlement agreement with US regulators agreeing to pay $4.3 billion in financial penalties.

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On this account, CZ stepped down from his position as CEO and pleaded guilty to failure to implement proper AML checks on the platform. He was sentenced to 4 months behind bars.

Binance’s Deal with Nigerian Regulators

Meanwhile, Nigerian authorities sent shockwaves in the international crypto community by arresting two Binance executives. The executives in question were visiting the nation to discuss matters with the regulators of the nation.

However, the regulators took both executives in custody and charged them with tax evasion. At the same time, the regulatory agency also brought charges against Binance for manipulating the value of the local fiat currency.

At present, the next hearing date for the Binance case in Nigeria has been postponed to 17th May 2024. The delay was granted by a Nigerian judge after lawyers shared the issue of limited time to present their case in court. Another dramatic twist was added to the case when reports about one of the apprehended executives fleeing to Kenya came to light.

The Nigerian authorities contacted Interpol for his extraction. In response, Interpol has informed that the agency is making progress on the matter of extraditing the executive out of Nigeria.

Another Cointelegraph recently reported that SBM Intelligence has issued comments on the tussle of Binance with Nigerian officials. The firm has noticed that arresting foreign business officials can create foreign investment challenges for the nation.

The firm further stated that circumstances surrounding the detention of Binance officials in the country also send a negative message and undermine the confidence among foreign investors. The consultancy firm has urged the local authorities to conduct a thorough investigation of the incident.

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

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