Canada’s anti-money laundering agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) disclosed that it had imposed a fine of nearly C$6 million ($4.38 million) on cryptocurrency exchange Binance for breaching money laundering and terrorist financing regulations.
According to FINTRAC, Binance failed to register as a foreign money services business with the intelligence body within specified deadlines. Moreover, despite ceasing operations in Canada last year, Binance neglected to report receiving virtual currency worth C$10,000 or more on 5,902 occasions between June 1, 2021, and July 19, 2023.
Binance did not provide an immediate response to Reuters’ request for comment.
This development follows former CEO Changpeng Zhao’s sentencing to four months in prison after pleading guilty to violating U.S. money laundering laws. Binance agreed to a $4.32 billion penalty, with Zhao paying a $50 million criminal fine and $50 million to the U.S. Commodity Futures Trading Commission.
Furthermore, Binance has been embroiled in a dispute with the Nigerian government over alleged money laundering amounting to $35 million. Recently, 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, 2024.
Teng stated in a blog post that Binance’s employees were approached by unknown individuals suggesting a secret cryptocurrency payment to settle the allegations.
“As our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.
“Later that day, our local counsel — representing us at that time — was summoned by the committee through someone purporting to be their agent, who relayed the committee’s terms and instructed our local counsel to advise us.
“Counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away and that our decision was expected by the morning,” Teng said in a blog post statement.
The Nigerian government countered these accusations, branding them as diversionary tactics and blackmail aimed at undermining the government’s stance.
The government spokesperson emphasized that the allegations lacked substance and were intended to divert attention from the serious criminal charges Binance is facing in Nigeria.
“This claim by Binance CEO lacks any iota of substance. It is a diversionary tactic and an attempted blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria.
“The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading,” the spokesperson said.
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