[India] Binance fined $2.25m by FIU over AML deficiencies

In India, cryptocurrency exchange Binance has been hit with an INR 188.2 million ($2.25 million) fine by the Financial Intelligence Unit (FIU) for alleged violations of the country’s Prevention of Money Laundering Act (PMLA), FinTech Futures reports.

The order, filed this week, stated that the fine results from “Binance’s ongoing provision of services to Indian clients and operations within India without adhering to its statutory obligations under the PMLA”.

In January 2024, Binance was one of nine cryptocurrency websites barred by the Indian government for operating without proper compliance with local financial regulations.

This aligned with news that Binance CEO and founder, Changpeng 'CZ' Zhao, would step down following Binance’s guilty plea to US federal charges relating to anti-money laundering (AML), unlicensed money transmitting and sanctions violations.

Binance reportedly attempted to restore its Indian operations in May by registering as a Virtual Digital Asset Service Provider (VDASP) with the FIU.

It now seems the exchange has again fallen short of the standards set by India’s financial watchdog. The FIU writes that “after considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated”.

The exchange has reportedly been given specific directions to shore up its AML processes, in future, including an order to “ensure diligent compliance” with the PMLA and its record-keeping requirements for the prevention of terrorist financing.

A  Binance spokesperson told FinTech Futures, “We are aware of the FIU’s order and are reviewing it now to determine next steps.

“We wish to work with the FIU as a reporting entity and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future. We remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities.”

Source: FinTech Futures

(Link and quotes via original reporting)

In India, cryptocurrency exchange Binance has been hit with an INR 188.2 million ($2.25 million) fine by the Financial Intelligence Unit (FIU) for alleged violations of the country’s Prevention of Money Laundering Act (PMLA), FinTech Futures reports.

The order, filed this week, stated that the fine results from “Binance’s ongoing provision of services to Indian clients and operations within India without adhering to its statutory obligations under the PMLA”.

In January 2024, Binance was one of nine cryptocurrency websites barred by the Indian government for operating without proper compliance with local financial regulations.

This aligned with news that Binance CEO and founder, Changpeng 'CZ' Zhao, would step down following Binance’s guilty plea to US federal charges relating to anti-money laundering (AML), unlicensed money transmitting and sanctions violations.

Binance reportedly attempted to restore its Indian operations in May by registering as a Virtual Digital Asset Service Provider (VDASP) with the FIU.

It now seems the exchange has again fallen short of the standards set by India’s financial watchdog. The FIU writes that “after considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated”.

The exchange has reportedly been given specific directions to shore up its AML processes, in future, including an order to “ensure diligent compliance” with the PMLA and its record-keeping requirements for the prevention of terrorist financing.

A  Binance spokesperson told FinTech Futures, “We are aware of the FIU’s order and are reviewing it now to determine next steps.

“We wish to work with the FIU as a reporting entity and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future. We remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities.”

Source: FinTech Futures

(Link and quotes via original reporting)