Binance will leave the US, pay billions in fines and appoint a supervisor for five years to resolve charges with the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), the agencies of sanctions control and money laundering of the US Department of the Treasury, according to press releases shared on Tuesday.
The exchange will pay $3.4 billion to FinCEN and $968 million to OFAC as part of these settlements, in which both agencies accused Binance of violating the Bank Secrecy Act and sanctions programs. Binance had already said it will pay $4.3 billion in fines and forfeitures to the US Department of Justice to resolve charges of violating sanctions law and failing to maintain an adequate know-your-customer program.
Additionally, Binance will conduct a "complete exit" from the US as part of its agreement with FinCEN and will appoint a supervisor for five years who will oversee the exchange's sanctions compliance program. The US Treasury Department will have access to Binance records and systems during that time.
A senior Treasury official told reporters that Tuesday's action was the largest deal in the department's history.
"I want to make sure people really understand how unprecedented this oversight is," the official said. “Not only will we pursue egregious conduct… but we will also… remove Binance from the US entirely.”
The official clarified that the separate exchange called Binance.US, which is the operating name of BAM Trading Services, a US subsidiary of Binance, is a registered money services business and is therefore not affected by Binance's exit. .
Binance allowed people associated with Hamas, the Islamic State of Iraq and Syria, people in North Korea and other sanctioned jurisdictions, money launderers and malicious cybersecurity actors to use its platform, the agencies said.
“By failing to comply with AML and sanctions obligations, Binance allowed a variety of illicit actors to freely transact on the platform,” the press release said.
