FINTRAC announced that it has imposed an administrative monetary penalty on Binance Holdings Limited, also operating as Binance Holdings (IE) Ltd., Binance.com, Binance Global and Binance.
This foreign money services business was “imposed an administrative monetary penalty of $6,002,000 on May 7, 2024 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.”
Binance Holdings Limited was found to have committed the following administrative violations:
- Failure to register with FINTRAC as a foreign money services business; and
- Failure to report large virtual currency transactions of $10,000 or more in the course of a single transaction, together with the prescribed information.
Sarah Paquet, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada:
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. 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.”
As Canada’s financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor, FINTRAC ensures “that businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act comply with their obligations under the Act and its Regulations.”
The Centre also analyzes information and “discloses financial intelligence to law enforcement and national security agencies to assist their investigations of money laundering, terrorist activity financing and threats to the security of Canada.”
Casinos, financial entities, money services businesses, real estate brokers and sales representatives and several other business sectors “are required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to keep certain records, identify clients, maintain a compliance regime and report certain financial transactions to FINTRAC, including international electronic funds transfers, large cash transactions, large virtual currency transactions and suspicious transactions.”
Suspicious transaction reporting, in particular, “is critical to FINTRAC’s ability to generate actionable financial intelligence for Canada’s law enforcement and national security agencies.”
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administrative monetary penalties are “meant to be non-punitive and are issued to encourage change in the non-compliant behavior of businesses.”
In 2023–24, FINTRAC issued 12 Notices of Violation “of non-compliance to businesses for a total of $26,115,999.50.”
FINTRAC has imposed more than 140 penalties “across most business sectors since it received the legislative authority to do so in 2008.”
