Financial Crime World

FinCEN Cracks Down on Financial Institutions: $6.9 Billion in Fines and Penalties

Washington D.C. - The Financial Crimes Enforcement Network (FinCEN) has taken a significant step towards protecting the US financial system by imposing a total of $6.9 billion in fines and penalties against several financial institutions for violating anti-money laundering (AML) and Bank Secrecy Act (BSA) regulations.

Historic Penalty Imposed on Binance

In its most recent enforcement action, FinCEN imposed a historic $3.4 billion penalty on Binance, the world’s largest virtual asset service provider. The penalties were levied for failing to register with FinCEN as a money services business, developing an effective AML program, and reporting suspicious transactions.

Compliance Enhancements Required

The resolution also requires Binance to undertake substantial compliance enhancements and undergo a five-year monitorship.

Other Enforcement Actions

FinCEN also imposed penalties on:

  • Kingdom Trust Company: $1.5 million
  • Bancredito International Bank and Trust Corporation: $15 million
  • Individual Gyanendra Kumar Azre: $100,000

These enforcement actions demonstrate FinCEN’s commitment to protecting the US financial system from money laundering and other illicit activities.

Commitment to Collaboration and Compliance

FinCEN’s Director praised the agency’s collaborative efforts with Treasury counterparts, law enforcement agencies, and industry partners to promote justice and security. The official emphasized the importance of compliance and encouraged financial institutions to incorporate feedback and findings from their primary regulators on BSA violations.

Ongoing Efforts to Promote Transparency and Accountability

FinCEN highlighted its commitment to ongoing and robust collaboration with industry partners to promote transparency and accountability. The agency sent a clear message that willful evasions of US law will be subject to severe repercussions and remediation of the relevant conduct.

Future Partnership and Engagement

The FinCEN Director expressed hope for continued partnership with industry professionals and emphasized the importance of engaging with each other to protect the financial system from harm.