The Financial Transactions and Reports Analysis Center of Canada (Fintrac) said it fined Xeltox Enterprises Ltd. (operating as cryptocurrency platform Cryptomus), a record C$176.96 million ($126 million) for widespread compliance failures under federal anti-money laundering and anti-terrorist financing laws.
The fine was related to over 1,000 suspicious transactions and more than 1,500 large virtual currency transactions that Canada’s anti-money laundering agency said Vancouver-based Cryptomus failed to report between July 1 and July 31, 2024.
Investigators said the unreported activity included transactions linked 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 risks of illicit financing and report important business changes as required by law, according to a press release.
“Given that several breaches in this case were linked to the trafficking of child sexual abuse material, fraud, ransomware payments and evasion of sanctions, Fintrac was forced to take this unprecedented enforcement action,” said Sarah Paquet, the regulator’s chief executive.
