Canada’s Financial Transactions and Reports Analysis Center (Fintrac) said it fined Xeltox Enterprises Ltd. (which operates as cryptocurrency platform Cryptomus) a record C$176.96 million ($126 million) for widespread failure to comply with federal anti-money laundering and anti-terrorist financing laws.
The fine was related to more than 1,000 suspicious transactions and more than 1,500 large virtual currency transactions that Canada’s Vancouver-based anti-money laundering agency Cryptomus said it failed to report between July 1 and July 31, 2024.
Investigators said the unreported activity included transactions related to child sexual abuse material, fraud, ransomware payments and sanctions evasion.
Cryptomus, formerly known as Certa Payments Ltd., also failed to keep its compliance policies up to date, assess illicit financing risks, or report key business changes as required by law, according to a press release.
“Given that numerous violations in this case were related to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion, Fintrac was forced to take this unprecedented enforcement action,” said Sarah Paquet, the regulator’s chief executive.
