US Department of the Treasury announces settlements and sanctions for Binance

Article summary

The US Department of the Treasury has announced that, through the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Internal Revenue Service (IRS) Criminal Investigation, settlements have been reached with Binance Holdings Ltd and its affiliates (Binance). The US Department of the Treasury has reported that action was taken following violations of the Bank Secrecy Act 1970 and violations of multiple sanctions programs, including the failure to implement programs to prevent and report suspicious transactions with terrorists, ransomware attackers, money launderers, and other criminals. Additionally, it was reported that Binance matched trades between US users and those in sanctioned jurisdictions such as Iran, North Korea, Syria, and the Crimea region of Ukraine. The settlement agreement between Binance and FinCEN includes a civil money penalty of US$3.4bn, imposes a five year monitorship, and requires significant compliance undertakings, including Binance's complete exit from the US. The settlement agreement between Binance and...