Canadian authorities imposes $4.38m fine on Binance for money laundering violations

Canadian authorities imposes $4.38m fine on Binance for money laundering violations

Canada’s anti-money laundering agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), imposed a fine of nearly $4.38 mill

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Canada’s anti-money laundering agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), imposed a fine of nearly $4.38 million on cryptocurrency company, Binance for violating money laundering and terrorist financing laws.

This penalty stems from Binance’s failure to register as a foreign money services business with FINTRAC despite multiple deadlines.

Binance did not report receiving virtual currency worth C$10,000 ($7,200) or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023.

Meanwhile, Binance ceased operations in Canada last year.

This development follows Binance’s legal battle with the Nigerian government over similar charges related to alleged money laundering totaling $35 million.

Binance’s former CEO, Changpeng Zhao, was sentenced to four months in prison after pleading guilty to violating US laws against money laundering.

Binance agreed to a $4.32 billion penalty, with Zhao paying a $50 million criminal fine plus $50 million to the US Commodity Futures Trading Commission.

Moreover, Binance has been entangled in a dispute with the Nigerian government over alleged money laundering.

Binance CEO Richard Teng accused the Nigerian government of blackmail and bribery, alleging that Nigerian officials sought a cryptocurrency bribe from Binance executives Tigran Gambaryan and Nadeem Anjarwalla before their detention on February 28.

The Nigerian government denied these accusations, branding them as diversionary tactics.

On February 28, Nairametrics reported that Nigerian officials detained two senior Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, during their visit to Nigeria in response to the country’s crackdown on cryptocurrency trading platforms.

However, Binance discontinued trading of the naira against bitcoin and tether cryptocurrencies on its exchange in response to the detention of its executives.