Canadian financial regulator FINTRAC has fined Binance 4 million Canadian dollars for violating anti-money laundering and counter-terrorism financing laws. Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has fined Binance Holdings Ltd. 6 million CAD (4.4 million USD) for violations of Canada’s anti-money laundering and counter-terrorist financing laws, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced in a press release on May 9.
According to the regulator, Binance violated the law in two cases. First, the exchange failed to register as a foreign financial services provider. Second, Binance failed to report digital transactions exceeding $10,000 between June 2021 and July 2023.
To recap, Binance announced its withdrawal from the Canadian market in May last year, citing restrictions on stablecoins under new cryptocurrency legislation. The Canadian Securities Administrators (CSA) has unveiled a rule that would ban stablecoin deposits and purchases without prior approval.
In response to the latest developments, FINTRA Director Sarah Paquet said Canada’s anti-money laundering and counter-terrorist financing regulations are designed to protect Canadians and the stability of the economy. She added that FINTRAC would continue to help businesses understand and comply with their responsibilities.
FINTRAC ensures that entities operating in Canada comply with money laundering and terrorist financing laws. FINTRAC also collects and analyzes financial data to support law enforcement and national security efforts to combat money laundering and terrorist financing.
Meanwhile, this latest development exacerbates the multiple regulatory issues facing Binance Holdings Ltd. Recall that the digital asset service provider reached a settlement with the U.S. Department of Justice involving $2.51 billion in forfeiture and penalties.
As part of the agreement, Binance founder and former CEO Changpeng Zhao (CZ) was fined $50 million and asked to resign. CZ was later sentenced to four months in prison on money laundering charges.
Additionally, Binance is currently involved in a dispute over regulatory issues in Nigeria, Africa’s most populous country, where two Binance representatives were arrested. Binance faces charges for allegedly violating anti-money laundering laws and contributing to the depreciation of the niira currency. However, Binance CEO Richard Teng recently accused Nigerian authorities of trying to extract bribes to settle the case.
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