Canada’s Anti-Money Laundering Watchdog, Fintrac, Levies Record $126M Fine on Cryptomus
Fintrac imposed a record C$176.96 million fine on Cryptomus for extensive anti-money laundering compliance failures.Summary
The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) issued a record fine of C$176.96 million (US$126 million) against Xeltox Enterprises Ltd., operating as the cryptocurrency platform Cryptomus, for widespread failures under federal anti-money laundering and counter-terrorist financing laws. The penalty stems from Cryptomus failing to report over 1,000 suspicious transactions and more than 1,500 large virtual currency transactions during July 2024. Fintrac CEO Sarah Paquet stated the enforcement action was necessary because many violations were linked to serious illicit activities, including trafficking in child sexual abuse material, fraud, ransomware payments, and sanctions evasion. Additionally, Cryptomus (formerly Certa Payments Ltd.) failed to maintain updated compliance policies, assess illicit finance risks, and report key business changes.
(Source：CoinDesk)