By Robb M. Stewart
Canada's financial crime watchdog levied a fine equivalent to $4.4 million against Binance for compliance failings, adding to the cryptocurrency exchange's regulatory woes.
The Financial Transactions and Reports Analysis Centre of Canada aid Thursday it imposed an administrative penalty of 6 million Canadian dollars on Binance for non-compliance with the laws related to money laundering and terrorist financing.
The regulator, known as Fintrac, found administrative violations including a failure to register as a foreign money-services business and allegedly failing to report large virtual currency transactions of C$10,000 or more in the course of a single transaction, along with the prescribed information.
Binance, already in the cross-hairs of the U.S. Securities and Exchange Commission, was last year accused of maximizing profits over protecting users, and it has pledged to deliver a safe and trusted platform. Binance last November pleaded guilty to violating U.S. anti-money-laundering requirements and agreed to pay a $4.3 billion fine. The exchange also faces civil charges in a SEC lawsuit.
Earlier this month, Fintrac imposed a C$9.19 million penalty on Toronto-Dominion Bank, one of the country's largest lenders, for compliance failings tied to monitoring and reporting suspected money laundering and terrorist financing. The bank remains in discussions with U.S. authorities over regulatory and law enforcement investigations into its compliance with America's anti-money laundering rules.
Under Canada's Proceeds of Crime and Terrorist Financing Act, administrative penalties are issued to encourage change in the behaviour of businesses and aren't intended to be punitive.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
May 09, 2024 10:14 ET (14:14 GMT)
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