Binance Fined $4.3M by Canadian Financial Regulator for ‘Administrative Violations’

As an experienced financial analyst, I believe that Binance’s repeated run-ins with regulatory bodies around the world raise serious concerns about the exchange’s commitment to complying with anti-money laundering (AML) and know-your-customer (KYC) regulations. The latest fine of C$6 million ($4.3 million) imposed by Canadian regulators for administrative violations is a significant blow to Binance’s reputation, especially given the massive $4.3 billion penalty it agreed to pay U.S. authorities just six months ago for similar violations.

Canadian regulatory authorities imposed a penalty of C$6 million (approximately $4.3 million) on Binance for allegedly breaching two distinct administrative provisions in the nation’s financial legislation on Tuesday.

In a statement issued on Thursday, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced that Binance, a well-known financial platform based outside of Canada, neglected to register as a foreign money services business, despite being given multiple chances to comply with this requirement.

Between June 1, 2021 and July 19, 2023, Binance neglected to provide FINTRAC with details of 5,902 cryptocurrency transactions valued over $10,000, along with the required customer identification information. FINTRAC identified these infringements through the utilization of blockchain explorer tools.

Six months after reaching a $4.3 billion settlement with U.S. regulators over alleged violations of anti-money laundering laws, Binance faces another fine. A week following the sentencing of its former CEO and co-founder, Changpeng “CZ” Zhao, to four months in prison for neglecting to establish a robust KYC/AML program.

Binance is facing regulatory challenges in Nigeria, where it has been allegedly involved in handling Nigerian naira and accused of money laundering and tax evasion. A high-ranking Binance executive based in America, Tigran Gambaryan, who oversees financial compliance for the exchange, was arrested in February on similar charges.

As an analyst, I’d rephrase it as follows: In a blog post published earlier this week, I, as Binance CEO, urged the Nigerian authorities to free Gambaryan and disclosed that prior to his arrest in January, there had been unidentified individuals who demanded a substantial cryptocurrency payment from us to drop the allegations against him. According to reports in the New York Times, this supposed bribe amounted to $150 million.