US Department Of Justice Desak Binance Gives Documents Regarding Anti-Money Laundering

Binance crypto exchange. (Coinmood)

JAKARTA - The United States federal executive agency, the Department of Justice (DoJ) recently urged the world's largest crypto trading company, Binance, to submit several documents related to anti-money laundering regulations.

This is part of the prosecution's demand for crypto exchanges to submit several documents related to money laundering. The DoJ also asked Binance to submit messages related to Binance CEO Changpeng Zhao.

Launching CryptoBriefing, the Justice Department asked CZ and 12 other exchanges and partners to disclose messages discussing how exchanges handle illegal transactions and recruit U.S. customers, Reuters reported, Thursday, September 1, 2022.

Companies were also asked to share records about files labeled as “documents [to] be destroyed, altered, or deleted from Binance files” or “transferred from the United States.” According to the report, prosecutors requested 29 documents on the company's management, structure, finance, business, and compliance practices since 2017.

The request comes as part of an investigation into Binance's compliance with US financial regulations. According to multiple sources familiar with the matter, US authorities want to ascertain whether Binance has violated the Bank Secrecy Act. The law requires crypto exchanges to register with the Ministry of Finance and comply with anti-money laundering regulations. Violation of the act can carry a prison sentence of 10 years.

Binance Response

Regarding the issue, Patrick Hillmann as head of Binance communications stated that it was a "standard process" for regulators to reach regulated crypto organizations.

"We work with the agency regularly to answer any questions they might have," Hillmann said.

In addition, Binance boss Changpeng Zhao also commented on DoJ's actions towards his company. In a Twitter post on Thursday, September 1, he claimed that his party had voluntarily submitted the information requested by the US Department of Justice.

The request to voluntarily share certain information in 2020, which we did, wrote CZ. Furthermore, CZ revealed the importance for the industry to build trust with regulators.

Previously, an investigative article from Reuters, stated that Binance had facilitated criminals to launder stolen money worth US$2.35 billion. The report also accused Binance of avoiding US sanctions related to Iranian customers. However, Binance has denied it. CZ stated that Binance used KYC (Know Your Customer) to verify its users.