India’s Financial Intelligence Unit (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on Binance, the world’s largest cryptocurrency exchange, for breaching the country’s anti-money laundering laws.
This penalty coincides with legal challenges Binance faces in Nigeria over similar accusations.
In India, the law mandates that virtual digital asset service providers, including cryptocurrency exchanges, must register with the FIU and comply with its anti-money laundering regulations.
Despite Binance’s registration with the FIU in May as part of its efforts to resume operations in India, the exchange was found to be in violation of three sections of the Prevention of Money Laundering Act (PMLA) of 2002.
The FIU’s action against Binance began with a notice issued on December 28, 2023, which required Binance to explain why it had not fulfilled its legal obligations despite being registered as a reporting entity.
After reviewing written and oral submissions from Binance, the FIU concluded that the charges were substantiated, leading to the fine imposed on June 19, 2024.
In Nigeria, the exchange is under investigation, with officials charges related to money laundering and foreign exchange violations. Nigerian authorities have accused Binance of laundering over $35 million through its platform.
Again, the company has been implicated in a case of tax evasion filed by Nigeria’s Federal Inland Revenue Service (FIRS), although recent court proceedings have seen some charges dismissed. Nigerian authorities have detained two senior Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, as part of their investigations.
The Economic and Financial Crimes Commission (EFCC) is prosecuting the crypto company and its executives for alleged money laundering and foreign exchange contraventions.
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