https://www.crowdfundinsider.com/2025/09/253126-canadas-fintrac-imposes-administrative-monetary-penalty-on-kucoin/

FINTRAC announced that it imposed an administrative monetary penalty on Peken Global Limited, also operating as KuCoin.

This Seychelles-incorporated foreign money services business operating in Canada was imposed “a penalty of $19,552,000 on July 28, 2025, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.”

Peken Global Limited (KuCoin) was found to have committed the following administrative violations:

Failure to register with FINTRAC as a foreign money services business.

Failure to report large virtual currency transactions of $10,000 or more in the course of a single transaction, together with the prescribed information.

Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to the commission or the attempted commission of a money laundering or a terrorist activity financing offence.

Sarah Paquet, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada:

“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 works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”

As Canada’s financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor, FINTRAC ensures “that businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act comply with their obligations under the Act and associated Regulations.”

The Centre also analyzes information and “discloses financial intelligence to law enforcement and national security agencies to assist their investigations of money laundering, terrorist activity financing, sanctions evasion and threats to the security of Canada.”

Suspicious transaction reporting, in particular, is “critical to FINTRAC’s ability to generate actionable financial intelligence for Canada’s law enforcement and national security agencies.”

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administrative monetary penalties “are meant to encourage change in the non-compliant behaviour of businesses.”

In 2024–25, FINTRAC issued “23 Notices of Violation of non-compliance to businesses, the largest number in one year in the Centre’s history, for a total of more than $25 million.”

FINTRAC has imposed more than “150 penalties across most business sectors since it received the legislative authority to do so in 2008.”

KuCoin, a global crypto platform, announced that it has appealed a recent decision by the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) that “upheld a Notice of Violation issued on March 31, 2025, along with a significant monetary penalty.”

While the company respects regulatory compliance, KuCoin “strongly disagrees with both the findings and the penalty.”

The exchange maintains that it should “not be classified as a Foreign Money Services Business under Canadian law and considers the fine to be excessive and punitive.”

KuCoin has exercised its statutory right by “appealing the decision before the Federal Court of Canada, citing both substantive and procedural grounds.”

BC Wong, CEO of KuCoin said:

“We disagree with this decision on both substantive and procedural grounds, and we have pursued all available legal avenues to ensure a fair outcome for KuCoin. As always, we remain fully committed to transparent operations and compliance with all applicable laws.”