According to Reuters, Binance has been penalized with a fine of $2.25 million (equivalent to Rs 18.82 crore) by India’s Financial Intelligence Unit (FIU) for breaching the anti-money laundering regulations of the country. The financial watchdog, after carefully reviewing Binance’s written and oral submissions along with the available evidence, concluded that the charges against the company were indeed supported. This notification was issued by the Director of FIU-IND.
The notice indicated that Binance was required to remit a fine of Rs 18.82 crore and was further instructed to adhere to “Chapter IV of the PMLA 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 for prevention of money laundering activities and combating the financing of terrorism (AMLCFT) to maintain records of all transactions.”
The reason behind FIU’s decision to levy a penalty on Binance.
Virtual digital asset service providers, such as crypto exchanges in India, are required by law to register with the FIU as reporting entities and adhere to its anti-money laundering guidelines. Binance successfully completed its initial registration with the FIU in May.
During the earlier part of this year, the FIU took action against nine offshore exchanges in India for failing to register and comply with local anti-money laundering regulations outlined in the Prevention of Money Laundering Act (PMLA) 2002.
KuCoin, a competitor of Binance, was subjected to a lesser penalty of Rs 34.5 lakh.
The financial oversight body operating under the jurisdiction of the ministry of finance has further urged the ministry of electronics and information technology to prohibit online entry to the trading platforms.
In addition to India, Binance has also faced fines from other countries. For instance, Canada’s anti-money laundering agency imposed a $4.38 million fine on Binance in May for breaching anti-money laundering regulations.
Apart from India, Binance has been penalized by other nations as well. For example, Canada’s anti-money laundering agency fined Binance $4.38 million in May for contravening anti-money laundering laws.Read More
Fasal
Very good