Friday, July 19, 2024
HomeLaw & PoliticsFIU Fines Binance $2.25 Million for Anti-Money Laundering Violations

FIU Fines Binance $2.25 Million for Anti-Money Laundering Violations

India’s Financial Intelligence Unit (FIU) has imposed a fine on Binance, a global cryptocurrency exchange. Binance has been fined 188.2 million rupees (approximately $2.25 million) for not complying with India’s Anti-Money Laundering (AML) regulations. These violations include failing to maintain and report transaction records, not providing required information to authorities, and not preserving records as mandated under the Prevention of Money Laundering Act (PMLA) of 2002.

The penalty was announced on June 19, following investigations and regulatory actions that began earlier in the year. The actions and regulations apply to Binance’s operations in India, where it serves local clients and is required to adhere to national financial regulations.

Binance, classified as a Virtual Digital Asset Service Provider under Indian law, is required to implement stringent AML measures and report detailed transaction records to the FIU. However, the investigation revealed significant lapses in these areas. The fine was imposed after careful review of the evidence, including written and oral submissions by Binance’s directors.

The fine against Binance is part of a broader crackdown on cryptocurrency exchanges operating in India without adhering to legal standards. This includes previous actions in January 2024, where Binance and other offshore exchanges were banned from operating in India for legal violations. Moreover, similar regulatory challenges and penalties have been encountered by Binance in other countries, including Canada and Nigeria, highlighting ongoing global scrutiny over the exchange’s compliance with AML and financial regulations. This series of regulatory challenges underscores the tightening landscape for cryptocurrency exchanges worldwide as authorities increase oversight to prevent financial crimes such as money laundering and tax evasion.



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