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• In the second installment of our Playing By the Rules series, we look at the structure and direction of Binance's compliance team.

• Binance's compliance team consists of professionals with a variety of backgrounds and backgrounds, including former law enforcement officials and experts in regulatory, cryptocurrency, fintech, and banking. The company has more than 750 core and support employees. In addition to complying with regulatory requirements, Binance is investing in relevant technologies and forging strategic partnerships.

• Binance has several specialized departments that focus on financial crime investigations, global money laundering reporting, sanctions, corporate compliance, customer due diligence, high-risk customer identification, and transaction tracking. These measures provide a robust and proactive approach to regulatory compliance.

• Binance is the world's largest digital asset ecosystem and has the largest transaction data available to it. We use them together with information from our blockchain analytics partners to gain comprehensive information and identify potentially illegal activities in the crypto industry. With this data we protect our users and prevent financial crimes.

Binance believes in compliance with regulatory requirements to protect users and further the adoption of digital assets. That's why we maintain a comprehensive and comprehensive compliance program aimed at addressing the most pressing issues in the crypto industry. In recent years, Binance has significantly expanded its compliance team to more than 750 core and support employees. The expansion of the team is accompanied by constant investments in technologies and solutions for important problems.

Currently, the structure of Binance's compliance team resembles that of many other large financial institutions. What sets Binance apart is its unique experience and knowledge, as well as their close collaboration with Binance's technology and product teams. All this helps to effectively manage risks. Binance's compliance team consists of professionals with a variety of backgrounds and backgrounds, including former law enforcement officials and experts in regulatory, cryptocurrency, fintech, and banking.

Division structure

Binance's compliance team is divided into departments, each responsible for specific functions. These include the Financial Crimes Unit; Global Money Laundering Reporting Unit; Department of Sanctions, Anti-Corruption and Combating the Financing of Terrorism; corporate compliance department; customer due diligence department; high-risk customer identification department and transaction tracking department.

Financial Crimes Unit

The Financial Crimes Unit is a critical component of Binance's compliance program. This group includes 150 employees who investigate illegal activities on the platform. They actively combat financial crimes such as money laundering, fraud, and terrorist financing, protecting Binance and platform users from potential risks.

The Financial Crimes Team has units that work together to effectively identify, investigate and report potential cases of financial misconduct. Investigators, a dedicated Suspicious Activity Reporting Unit, a global training team, and a law enforcement response team are working on this, which receives about 1,300 requests per week. In addition, the team conducts regular trainings where Binance specialists share their experience in preventing and investigating cybercrimes with law enforcement officials around the world.

Global Money Laundering Reporting Unit

The Global Money Laundering Reporting Office (GMLRO) enforces compliance with international anti-money laundering (AML) regulations. This team includes four regional leaders and more than 60 specialists who diligently identify, monitor and prevent potential money laundering cases. The team works closely with local financial intelligence units, regulators and law enforcement agencies to report suspicious individuals and transactions, and assist with investigations. In addition, employees monitor changes in the legal field, ensuring full compliance with current legislation and regulations.

Sanctions, Anti-Corruption and Combating the Financing of Terrorism Department

The Sanctions, Anti-Corruption (ABC) and Counter-Terrorism Financing (CTF) Division is responsible for establishing and implementing policies and controls to mitigate the risks associated with violations of applicable sanctions, anti-bribery and corruption laws, and counter-financing measures terrorism. The team continually monitors changes in relevant legislation, including the introduction of any prohibitions related to Binance's policies and procedures. This is how we determine acceptable risk levels for the organization and train business partners to protect the platform from unscrupulous users.

Corporate Compliance

Binance's Corporate Compliance team is comprised of professionals with experience in cryptocurrencies, payments, and traditional banking services. These employees use their risk management and compliance skills to further protect the company.

The Corporate Compliance team performs several important tasks, including monitoring and testing compliance controls; conducting inspections and audits of licensed Binance divisions; implementing compliance controls across all Binance products and services; supervision of the activities of third parties; institution-wide and country-wide AML/CFT risk assessment; solving management problems and initiatives, and developing and overseeing company-wide training.

Customer Due Diligence Department

The Customer Due Diligence Department (CDD) is responsible for conducting KYC and KYB verifications. Verifying the identity of Binance customers and business partners is critical to preventing fraud, identity theft, money laundering, and other illegal activities. The CDD team ensures compliance with regulatory requirements in the most convenient way.

High Risk Client Identification Department

The High Risk Client Identification Department oversees due diligence on high-risk clients and companies. It works closely with the CDD department to strictly verify and monitor the activities of such users to reduce the risk of illegal activities on the platform.

The team also advises colleagues on verifying sources of income among retail clients. In addition, she participates in the AML program and conducts licensing assessments for Binance enterprise clients.

Transaction Tracking Department

Binance's transaction tracking department is responsible for reviewing transactions for possible money laundering and terrorist financing. These specialists use advanced technology and sophisticated analytical tools to identify suspicious patterns and potential risks. The Transaction Tracking Department maintains the platform and ensures compliance with global regulatory requirements related to money laundering and terrorist financing. 18 executives and 175 analysts on fiat and cryptocurrency operations are working on this.

Technology development and partnerships

In addition to its dedicated workforce, Binance is also actively investing in cutting-edge technology and pursuing strategic partnerships. All of this helps improve our compliance capabilities. For example, we partner with leading regulatory technology (RegTech) providers to develop proprietary tools to monitor transactions, identify potential risks, and improve compliance processes.

Binance is the world's largest crypto ecosystem, so it has access to the largest volumes of transaction data. We combine them with information from our blockchain analytics partners such as Chainalysis, TRM and Elliptic. This is how we receive comprehensive information and identify potentially illegal activities in the crypto industry. Using this data, we detect and prevent the possibility of our platform being used for illegal purposes, and protect users from fraud and other forms of financial crime.

Binance understands the importance of compliance. We strive to provide users with a secure and transparent platform to explore the world of Web3, while reducing the risks of financial crime, money laundering and other forms of illegal activity.

Additional Information

• Playing by the Rules: Current Regulatory Requirements in the Cryptocurrency World

• Binance Team's Compliance Experience

• How Binance prevents users from blocked jurisdictions from accessing our platform

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