Per FINTRAC:

Nature of breach

Breach No. 1

Failure to register with the Centre – Proceeds of Crime (Money Laundering) and Terrorist Financing Act, paragraph 11.1

Binance Holdings Limited failed to register as a foreign money services business (FMSB) with the Centre.

Binance Holdings Limited was provided with several opportunities to register with FINTRAC as an FMSB, however, it had not completed its registration by the deadlines set. It should be noted that Binance Holdings Limited was deemed to be an FMSB and was required to be registered with FINTRAC up until 25th September, 2023, when it officially ceased all operations in Canada. Up until that day, Binance Holdings Limited was in breach of its registration requirements.

Breach No. 2

Failure to report a large virtual currency transaction of CAD10,000 or more in the course of a single transaction, together with the prescribed information – paragraph 30(1)(f) of the PCMLTF Regulations

Binance Holdings Limited failed to submit large virtual currency transaction reports with prescribed information.

Using blockchain analytics, FINTRAC identified that Binance Holdings Limited failed to report the receipt from a client, of an amount in virtual currency of CAD10,000 or more in the course of a single transaction, together with the prescribed information that occurred on 5,902 separate occasions during the period of 1 June, 2021 until 19 July, 2023, which is contrary to section 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30(1)(f) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Note, this is an administrative penalty. It is not a fine, as it is being inaccurately reported elsewhere.