Fintrac hits Binance with $6M fine

Crypto platform Binance Holdings Ltd. has been fined $6 million by the Financial Transactions and Reports Analysis Centre of Canada (Fintrac) for violations of anti–money laundering rules.

Fintrac sanctioned Binance for failing to report large crypto transactions (transactions over $10,000), and for failing to register as a foreign money services business.

The agency imposed an administrative monetary penalty of $6,002,000 on the firm on Tuesday, it said.

Last week, Binance founder, Changpeng Zhao, was sentenced to four months in prison by a U.S. district court judge for his role in the platform’s anti-money laundering failures in the U.S.

In November 2023, Binance pled guilty and agreed to pay US$4.3 billion to resolve allegations that it violated U.S. anti–money laundering rules, and failed to register there too. Zhao also pled guilty to failing to maintain an effective anti–money laundering program at the company.

Recently, Ontario’s Superior Court of Justice certified a proposed investor class action against Binance, seeking damages for allegedly dealing in crypto derivatives without being registered, which the suit said violated securities laws.

Those allegations have not been proven.

In a release, Sarah Paquet, Fintrac’s director and CEO, said, “Fintrac will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed.”

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.