Binance Faces $2.25M Fine for Violating India’s AML Laws

Binance faces a multimillion-dollar fine for violating India’s Prevention of Money Laundering Act (PMLA).

Guy running away from a pile of his coins on Binance and some coins are falling from his pocket.
Created by Kornelija Poderskytė from DailyCoin
  • Binance has been fined in India.
  • The exchange was banned in the country in January.
  • India’s fine against the exchange follows similar regulatory actions in other jurisdictions.

India’s Financial Intelligence Unit (FIU) has ordered Binance to pay millions in penalties for violating the country’s Prevention of Money Laundering Act (PMLA).

Binance, the world’s largest crypto exchange by trade volume, landed in FIU’s crosshairs in December 2023 when the regulator issued a notice against it. The FIU asked the exchange to “demonstrate why appropriate action should not be undertaken against it” for its dereliction of duties under the PMLA.

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While Binance reportedly registered with the FIU in May in response to the development and approached the regulator with oral and written submissions in defense, charges against the exchange were substantiated on June 19.

Multimillion-Dollar Fine

According to the official order, the Director of FIU-IND has imposed a total penalty of Rs.18,82,00,000 (Rupees Eighteen Crore Eighty Two Lakh Only) on Binance with reference to multiple violations under PMLA.

The penalty translates to about $2.25 million and comes with other “specific directions” issued to the exchange.

“Furthermore, specific directions have also been issued to Binance to ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) of 2002,” the FIU’s order read.

This is not the first time Binance has been fined for AML violations, underscoring how the exchange’s years of operating in a regulatory gray area appear to be catching up with it.

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On May 7, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) slapped Binance with a $4.3 million fine, nearly five months after the exchange agreed to a staggering $4.3 billion settlement in the U.S. over AML and sanctions violations.

As part of the settlement deal, Binance founder Changpeng Zhao (CZ) pled guilty to multiple crimes and agreed to a $50 million fine. CZ is currently serving a four-month sentence in California Prison Lompoc II.

Read about Binance’s exit from Canada:
Binance Canada Exit Leaves Crypto Community Split

Stay updated on Binance’s latest airdrop program:
Binance Entices BNB Holders into ‘Exclusive’ Airdrop Program

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.