Financial Crimes Investigation Board Fined 8 Million Lira to Binance for the non-compliance against AML


Turkish
regulatory body Financial Crimes Investigation Board (MASAK) has found the financial
platforms, Binance operating in Turkey as guilty of non-compliance with
local laws on Anti-Money-Laundering (AML) audit. 8
million lira (nearly $750,000) Binance is required to pay for the alleged
violation.
Under the
Ministry of Finance and Treasury MASAK serves as Turkey’s financial
intelligence unit. MASAK conducted an audit of Law No. 5549 which mainly
focussed on Prevention of Laundering Proceeds of Crime, also known as the AML
Law., as per the local publisher media Anadolu agency. The crypto exchange Binance
failed the audit as it lacks to set proper measures to prevent proceeds through
illicit means from being laundered on the platform.
As per Turkish AML law, the firms working in the financial
sector must identify and verify customers’ personal identification details on
the platform including surname, dates of birth, and submit unique identification
number documents, type, and a number of identity documents. The law also requires
businesses to immediately report on identifying any suspicious transactions taking
place to the relevant government authorities within 10 days tenure.
The timeline
also coincides with the day, President Erdogan announced the completion of a
crypto law draft that will soon be handed over to the Parliament for permission.
As Binance’s non-compliance can affect the nation, the government fined the maximum
amount and hence it becomes the first crypto exchange in Turkey to get fined by
the government. MASAK asked exchanges to notify transactions within 10 days
which exceeds the value of 10 thousand lira.
MASAK is working
with a global regulator Financial Action Task Force (FATF), against money
laundering and terrorist financing, according to former Treasury and Cost
Minister Lutfi Elvan“FATF has asked for measures to be taken against crypto
trading platforms.”
Warning
received from regulators earlier:
Earlier Binance
was fined for violating regulatory rules. In the months of April, regulators
notified exchanges operating in Turkey about the same scenario. In Singapore,
U.K, and U.S, Binance had to go through a difficult time dealing with strict
regulations.

Joyashree Dey
CBW - External Analyst
INDIA