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FINTRAC fines Binance $4.4 million for AML/CFT violations | News Short

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The Compliance Week Financial Crimes and Compliance Summit will be held June 10-11 at Fordham Law School in Manhattan, New York. The event features over 40 speakers, including representatives from the SEC, CFTC, FINRA, FBI, OFAC, BIS and more.

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Binance did not register as a foreign money services entity and did not report large virtual currency transactions valued at $10,000 or more in a single transaction with the required information, the agency announced in a press release on Thursday.

The AML/CFT Act “aims to protect the safety of Canadians and the security of the Canadian economy,” Sarah Paquet, director and CEO of FINTRAC, said in the release. “…We will…resolutely ensure that businesses continue to carry out their responsibilities and will take appropriate action when needed.”

Details: Before September 25, 2023, when Binance ceased operations in Canada, it failed to register with FINTRAC and failed to meet registration deadlines despite several options, the agency alleged in the penalty notice.

From June 2021 to July 2023, Binance reported no large transactions on 5,902 separate occasions, FINTRAC claims.

In November, the US Department of Justice (DOJ) announced that the company would plead guilty and pay a $4.3 billion fine over widespread AML violations. Binance founder and former CEO Changpeng Zhao also pleaded guilty and agreed to pay a $150 million fine to the U.S. Commodity Futures Trading Commission.

Late last month, Zhao was sentenced to four months in prison.

Binance did not immediately respond to a request for comment.