Canada’s financial intelligence unit has imposed a record C$19.6 million ($14 million) fine on Peken Global Limited, operator of crypto exchange KuCoin, for failing to comply with anti-money laundering (AML) requirements.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the penalty on Thursday, citing three violations.

Largest Penalty Imposed by FINTRAC

The Seychelles-based company did not register as a foreign money services business, and allegedly failed to report nearly 3,000 large virtual currency transactions above C$10,000 between 2021 and 2024. The FINTRAC claims that KuCoin neglected to file 33 suspicious transaction reports. FINTRAC classified the breaches as “serious” to “very serious,” saying such gaps weaken defenses against money laundering and terrorist financing.

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Canada has also tightened oversight of payment providers. On September 8, key provisions of the Retail Payment Activities Act took effect, placing wallet and stablecoin operators under the supervision of the Bank of Canada, with new safeguards for funds and risk controls. The Bank of Canada outlined implementation milestones and described the registration framework.

Sarah Paquet, FINTRAC’s director and chief executive, said the regime exists to protect “the safety of Canadians and the security of Canada’s economy,” adding the agency will act when firms fail to meet obligations.

KuCoin Appeals and Global Context

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Author: Shota Oba