The Financial Intelligence Unit of India has fined Binance, the largest cryptocurrency exchange in the world, 188.2 million rupees ($2.25 million) for breaking its money laundering laws.
This follows the ongoing trial of Binance’s officials in Nigeria for the same charges.
Virtual digital asset service providers in India, such as cryptocurrency exchanges, must register as reporting entities with the FIU and abide by its anti-money laundering regulations, cointelegraph.
Following the FIU’s show-cause notices to nine offshore exchanges operating outside of local regulations, Binance registered with the agency in May in an attempt to continue operations within the nation.
But according to the Indian Authority, Binance has broken three provisions of the nation’s Prevention of Money Laundering Act (PMLA), 2002, as a registered organization.
“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).
“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.
Consequently, the Director FIU-IND vide order dated 19th June 2024 in the exercise of powers under Section 13 PMLA, imposed a total penalty of Rs. 18,82,00,000,” the FIU stated.
Recall the Nigerian government through the Federal Inland Revenue Service had filed charges against Binance over alleged tax evasion. In addition, the Economic and Financial Crimes Commission accused Binance of laundering more than $35 million through its platform
Two senior Binance executives were taken into custody by Nigerian police on February 28, Nadeem Anjarwalla, a 37-year-old British-Kenyan who holds the position of regional manager for Africa, and Tigran Gambaryan, a 39-year-old American who oversees financial crime compliance at Binance.
