Canada fines KuCoin operator Peken Global 19.55M CAD for AML rules

Canada's financial intelligence agency has imposed a 19,552,000 Canadian dollar penalty on the operator of cryptocurrency exchange KuCoin, citing widespread failures to comply with the country's anti-money laundering rules. The Financial Transactions and Reports Analysis Centre of Canada said the fine was levied on Peken Global Limited, a Seychelles-incorporated company that operates KuCoin, on July 28; the company has appealed the decision to the Federal Court of Canada.

FINTRAC said Peken Global failed to register as a foreign money services business as required under Canadian law, did not report nearly 3,000 large virtual currency transactions between 2021 and 2024, and neglected to file suspicious transaction reports in 33 instances. The agency described the missed suspicious transaction reports as severe noncompliance that deprived law enforcement of critical information. The penalty, about 14 million U.S. dollars, is the largest ever imposed by FINTRAC.

"Canada's anti-money laundering and anti-terrorist financing regime is in place to protect the safety of Canadians and the security of Canada's economy," FINTRAC Director and Chief Executive Officer Sarah Paquet said in a...