In the midst of its ongoing trial with the Nigerian government, cryptocurrency exchange platform, Binance Holdings Limited has been slammed with a fine of 188.2 million rupees ($2.25 million) by India’s Financial Intelligence Unit (FIU) for non-compliance with local anti-money laundering (AML) regulations.
A document titled ‘Order in original No. 10/DIR/FIU-IND/2024 in the matter of Binance u/s Section 13 dated 19.06.2024’ by India’s Financial Intelligence Unit (FIU), said the fine was for violating its money laundering law.
This is the highest ever fine imposed on any crypto entity for non-compliance to AML laws in India.
“Due to Binance’s ongoing provision of services to Indian clients and operations within India without adhering to its statutory obligations under the PMLA a Notice dated December 28, 2023, was issued to Binance pursuant to Section 13 of the Act, compelling Binance to demonstrate why appropriate action should not be undertaken against it for its dereliction of duties under the Act, despite its status as a Reporting Entity owing to its operations as a Virtual Digital Asset Service Provider (VDA SP).
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“After considering the written and oral submissions of Binance, the Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated” the FIU announcement said.
“Consequently, the Director FIU-IND” ordered the imposition of a “total penalty” of approximately $2.2 million on Binance along with “specific directions to ensure diligent compliance with the obligations.”
“We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT),” said Dilip Chenoy, Chairman, Bharat Web3 Association.
In India, virtual digital asset service providers like crypto exchanges are required to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
In May, Binance had registered with the FIU as the exchange sought to resume operations in the country after the watchdog issued show-cause notices to nine offshore exchanges operating in violation of local rules.
By: Babajide Okeowo
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