Binance’s Financial Crimes Compliance (FCC) department has partnered with Taiwan’s Ministry of Justice Investigation Bureau and the Taipei District Prosecutors Office to address a significant case of money laundering, resulting in the resolution of a $6.2 million digital asset fraud. Criminals utilized cryptocurrency transactions to launder illegal proceeds, employing fake remittance documents, counterfeit identification information, and manipulated customer communication records to avoid detection by law enforcement.
Binance, in a statement to Cointelegraph, did not specifically mention the case but acknowledged that it had been reported in the media. The operation involved the falsification of documentation, such as “fake customer conversation records” and forged identity verification data, to create the illusion that individual merchants were transferring funds amounting to nearly $6 million.
Working in collaboration with Binance, prosecutor Lo Wei-yuan from the Taipei District Prosecutors Office successfully pieced together the complete picture of the suspicions surrounding nine individuals who were charged with offenses including money laundering, fraud, and organized crime.
Binance emphasized its commitment to going beyond standard compliance measures and actively cooperating with law enforcement agencies worldwide. The company has even developed the industry’s first training program for law enforcement, aiming to assist in the detection and prosecution of financial and cybercrimes.
Binance had previously applied for registration under Taiwan’s Financial Supervisory Commission (FSC) and Money Laundering Control Act in 2023. The exchange has been recognized by local regulatory bodies for its collaborative efforts in assisting investigations into digital asset fraud. In March, Binance hosted a virtual asset law enforcement training workshop for officers from the Keelung District Prosecutors Office, sharing its expertise in combating digital asset-related crimes.
Taiwanese regulators are currently working towards introducing cryptocurrency regulations by the end of 2024. The chairman of the FSC, Huang Tianzhu, has expressed concerns about cryptocurrencies being used for illicit activities and intends to strengthen oversight of crypto exchanges and impose penalties. The proposed law would require foreign cryptocurrency platforms to establish local branches and comply with Anti-Money Laundering (AML) regulations to avoid criminal penalties.
Taiwan’s Ministry of Justice has recently proposed amendments to existing AML laws, which could result in jail terms of up to two years and fines of up to $1.5 million for noncompliant firms. The amendments aim to enhance efforts to combat fraud and establish strict regulations for money laundering prevention measures for crypto service providers.