Binance fined $4.4 million in Canada for AML lapses

abdelaziz Fathi

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a hefty fine on cryptocurrency exchange giant Binance for non-compliance with money laundering regulations. The action was the result of findings from a compliance activity conducted in 2023.

The regulatory body cited two specific breaches: Binance’s failure to register as a foreign money services business and its failure to report a single virtual currency transaction exceeding $10,000.

As a result, FINTRAC issued an administrative monetary penalty of $6,002,000 CAD (roughly $4.4 million USD) against Binance Holdings Limited, which operates under various names including Binance Holdings (IE) Ltd.,, Binance Global, and Binance.

FINTRAC, which functions as part of Canada’s financial intelligence unit, is tasked with detecting and preventing money laundering, terrorism financing, and other illicit activities within the Canadian financial ecosystem. The regulator uses blockchain analytics to uncover that Binance failed to report the receipt of an amount in virtual currency of $10,000 or more on 5,902 separate occasions between June 1, 2021, and July 19, 2023.

This is not the first time Binance has faced regulatory scrutiny in Canada. The country’s recent moves to impose stricter rules on digital asset trading platforms prompt Binance, the world’s biggest crypto exchange, to cease its operations.

Binance said earlier that the new guidance issued for cryptocurrency exchanges in Canada, which relates to stablecoins and investor limits, has made it “no longer tenable” for the company to operate in the country.

Previously, Binance was under fire from a Canadian provincial regulator for allegedly violating Ontario securities law. The industry’s giant opted to pull out of Ontario, rather than comply with securities law or face regulatory scrutiny.

In November 2023, the US Department of Justice sought a $4 billion plea deal from Binance to resolve investigations into money laundering, fraud, and sanctions violations.

As part of the settlement, former CEO Changpeng ‘CZ’ Zhao agreed to step down from his role and paid a $50 million fine. Zhao was also sentenced to four months in prison in April 2024 after pleading guilty to violating anti-money laundering sanctions regulations.

Read this next


Exclusive: Autochartist CEO Ilan Azbel Delivers Insight on AI at iFX EXPO LATAM 2024

In an insightful interview with FinanceFeeds at iFX EXPO LATAM 2024, Ilan Azbel, CEO of Autochartist, discussed the evolution of trading technology, effective trader engagement strategies, the integration of AI in trading analytics, and the cautious approach of regulated brokers towards its adoption.

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”


Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”