A Report by CYS Global Remit Legal & Compliance Office
In recent news, Binance chief, Changpeng Zhao, has stepped down and pleaded guilty to breaking U.S. anti-money laundering laws, resulting in a $4.3 billion settlement. This development, one of the largest corporate penalties in U.S. history, follows a series of investigations impacting the crypto industry.
Binance, the world's largest crypto exchange, was found to have violated U.S. anti-money laundering and sanctions laws, neglecting to report over 100,000 suspicious transactions involving organizations labelled as terrorist groups, including Hamas, al Qaeda, and ISIS. Additionally, the Exchange failed to report transactions related to websites selling child sexual abuse materials and emerged as a major recipient of ransomware proceeds.
At CYS Global Remit, we reiterate our unwavering commitment to a stringent Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime. Upholding robust AML/CFT measures is paramount for preventing illegal activities, ensuring regulatory compliance, and preserving the integrity of the financial system.
To strengthen our AML/CFT framework, we adhere to a comprehensive set of best practices, including:
Customer Due Diligence (CDD): Being the first line of defence, we identify and verify customers, understanding their purpose before establishing any business relationship.
Transaction Monitoring: Leveraging AI and machine learning, we analyse customer data, including trading volume and remittance purposes, to identify abnormal transactions for further scrutiny.
Employee Training: Recognizing the critical role of well-informed staff, we invest in comprehensive training to ensure compliance with regulatory requirements and safeguard against illicit activities.
Reporting Suspicious Activities: We have established clear procedures for reporting and investigating suspicious transactions, facilitating timely cooperation with law enforcement.
Our commitment to these practices reflects our dedication to maintaining the highest standards of integrity, security, and transparency. At CYS Global Remit, we stand firm in our pledge to operate ethically and responsibly in the ever-evolving financial landscape.