Binance Appeals $4.4M Fine by Canada’s FINTRAC Over AML Violations

Binance, a global cryptocurrency exchange, has formally challenged a $4.4 million fine levied by Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). The fine, imposed in May, accuses Binance of failing to adhere to anti-money laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. The appeal was lodged on June 5 in Canada’s Federal Court.

Binance Challenges FINTRAC’s $4.4M Fine in Court

The action by FINTRAC highlights alleged shortcomings in Binance’s operations, specifically their failure to register as a foreign money services business and to report transactions exceeding $10,000. In its appeal, Binance contends that its services were not targeted at Canadian residents. Moreover, the company declared its intent to exit the Canadian market in May 2023, citing the challenging regulatory climate as a critical reason for its decision.

This confrontation with Canadian regulators is not isolated. Binance‘s compliance issues have sparked scrutiny in various jurisdictions. The appeal in Canada underscores a broader challenge for the exchange as it navigates complex global regulatory frameworks.

Binance Wins Dismissal of Charges in Nigeria

Binance’s regulatory challenges extend beyond Canadian borders. The exchange recently settled a significant legal battle in the United States by agreeing to a $4.3 billion settlement with U.S. authorities. This settlement followed allegations similar to those made by FINTRAC and required Changpeng Zhao, the then-CEO, to resign after pleading guilty to a felony charge. Zhao is currently serving a four-month federal prison sentence.

Further complicating matters, the U.S. Department of Justice appointed the Forensic Risk Alliance to oversee Binance’s compliance measures for the next three years. This decision came after a controversial deliberation that saw Sullivan & Cromwell, a law firm entangled in the FTX collapse, lose the monitoring role.

In addition to its legal and regulatory hurdles, Binance continues to face operational challenges. Earlier this year, two of its executives were detained in Nigeria on tax evasion and money laundering charges. This incident further complicates the company’s global operations and efforts to maintain a clean regulatory slate. However, Nigeria’s Federal Inland Revenue Service (FIRS) dismissed the charges against the exchange last week, leading to Binance securing a big win in Nigeria. 

Also Read: Binance Co-Founder In Damage Control Mode Over Racial Meme Message

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