PANews August 7 news, according to the announcement on the official website of the New York Financial Services Department (DFS), Paxos was fined $26.5 million for failing to conduct adequate due diligence on its former partner Binance, and for significant deficiencies in its anti-money laundering compliance system. The investigation found that Paxos did not effectively monitor suspicious transactions involving Binance, leading to approximately $1.6 billion in illicit funds flowing in and out of Binance between 2017 and 2022. Additionally, Paxos's customer due diligence and transaction monitoring procedures have long been inadequate, failing to timely identify and address high-risk accounts and behaviors.
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The New York Department of Financial Services fined Paxos $26.5 million and required an additional $22 million in Compliance investment.
PANews August 7 news, according to the announcement on the official website of the New York Financial Services Department (DFS), Paxos was fined $26.5 million for failing to conduct adequate due diligence on its former partner Binance, and for significant deficiencies in its anti-money laundering compliance system. The investigation found that Paxos did not effectively monitor suspicious transactions involving Binance, leading to approximately $1.6 billion in illicit funds flowing in and out of Binance between 2017 and 2022. Additionally, Paxos's customer due diligence and transaction monitoring procedures have long been inadequate, failing to timely identify and address high-risk accounts and behaviors.