The Financial Transactions and Reports Analysis Center of Canada (FINTAC) said it was penalizing Xeltox Enterprises Ltd. (which operates as the cryptocurrency platform Cryptomus), a record C$176.96 million ($126 million) for Widespread compliance failures under federal anti-money laundering and counter-terrorist 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 July 31, 2024.
Investigators said the undisclosed activity included transactions tied to child abuse material, fraud, ransomware payments and evasion.
Cryptomus, formerly known as Certa Payment Ltd., also failed to keep its compliance policies updated, assess the risks of illicit finance and report major business changes as required by law, according to a press release.
“Given that many of the violations in this case are connected to trafficking in child abuse material, fraud, payment of ransomware and evasion of punishment, Fintrac was forced to take this unprecedented action,” said Sarah Paquet, the regulator’s CEO.
