Canada fines Binance $4.38 million for money laundering

Canada’s anti-money laundering agency Thursday said it had fined cryptocurrency giant Binance to the tune of $4.38 million.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said Binance violated Canada’s money laundering and terrorism financing laws.

Binance was also accused of refusing to register its foreign money services with the country’s intelligence despite several deadlines.

Reuters reported that FINTRAC failed to report that it received virtual deposits of $10,000 or more 5,902 different times June 1, 2021 and July 19, 2023.

The fine came as the cryptocurrency exchange navigates legal landmines in the US and Nigeria.

Its founder and former CEO Changpeng Zhao was recently sentenced to a four-month jail term in the United States. Zhao pleaded guilty to violating US anti-money laundering regulations.

The Canadian resigned from his post last year as part of a deal with US authorities.

Binance also agreed to pay a $4.32 billion fine and Zhao a $50 million criminal. He is to also pay an additional $50 million to the U.S. Commodity Futures Trading Commission.

Binance faces familiar allegations of anti-money laundering violations. Additionally, the Nigerian authorities said the exchange was involved in foreign exchange manipulation.

In February, Nigeria’s central bank governor Olayemi Cardoso said about $26 billion from illicit sources passed through Binance in a single year.