The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has levied a $4.4 million administrative penalty on Binance for failing to comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
In a notice issued on May 9, FINTRAC revealed that it had penalized Binance Holdings Limited for its failure to register as a foreign money services business and report digital currency transactions exceeding $10,000. The regulator reported a total of 5,902 transactions of $10,000 or more on Binance’s platform from June 2021 to July 2023.
According to FINTRAC, Binance had multiple opportunities to register with the agency but failed to do so by the given deadlines. Despite being deemed a foreign money services business, Binance continued to operate without proper registration until it officially ceased operations in Canada on September 25, 2023.
The $4.4 million penalty is separate from Binance’s legal troubles in other jurisdictions. In November 2023, the company reached a settlement with U.S. authorities, agreeing to pay $4.3 billion in penalties. As part of the deal, Changpeng Zhao stepped down as CEO and pleaded guilty to one felony charge, resulting in a four-month prison sentence.
In Nigeria, two Binance executives were arrested in February on charges of tax evasion and money laundering. While one of the individuals reportedly fled to Kenya, Interpol has indicated readiness to extradite him back to Nigeria. Court proceedings in Nigeria are set to resume on May 17.
