The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) says it has fined Xeltox Enterprises Ltd. (which operates under the cryptocurrency platform name Cryptomus), a record C$176.96 million ($126 million) for widespread failures to comply with federal anti-money laundering and terrorism financing laws.
The fine related to more than 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 31, 2024.
Investigators said the unreported activities included transactions related to child pornography, 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 and report major business changes as required by law, according to a press release.
“Given that many of the violations in this case were related to trafficking in child pornography, fraud, ransomware payments and sanctions evasion, Fintrac was forced to take this unprecedented enforcement action,” said Sarah Paquet, CEO of the regulator.
