Senators Target Binance in Sanctions and AML Probe Request

Crime

A group of 11 U.S. senators has called for investigation whether crypto exchange Binance is complying with U.S. sanctions laws and Anti-Money Laundering (AML) requirements, citing recent reports alleging sanctions violations.

Key Takeaways

U.S. senators urged a federal review of Binance’s sanctions and AML compliance.
Lawmakers cited reports of $1.7B in digital assets allegedly flowing to Iranian-linked entities.
Concerns include potential Russian sanctions evasion and access by Iranian users.
Binance denies the allegations and says it reports suspicious activity to authorities..

In a letter sent to Treasury Secretary Scott Bessent, the lawmakers requested a “prompt, comprehensive review” of Binance’s compliance framework and its adherence to settlement agreements reached in 2023.

Allegations of Iran-Linked Transactions

According to the letter, approximately $1.7 billion in digital assets reportedly flowed through Binance to Iranian entities linked to terrorism, including groups connected to the Houthis and the Islamic Revolutionary Guard Corps (IRGC).

Investigators allegedly identified more than 1,500 accounts accessed by users in Iran, along with potential activity tied to Russian sanctions evasion.

The senators also claimed that some Binance compliance staff who flagged suspicious transactions were later dismissed. Additionally, they cited reports that law enforcement agencies experienced reduced cooperation from the exchange when requesting customer information.

Concerns Over New Products

The lawmakers raised alarms about newer Binance offerings, including payment cards launched in parts of the former Soviet Union and partnerships tied to stablecoin initiatives.

They warned that such products could potentially facilitate sanctions evasion if compliance controls are insufficient.
The letter was signed by Senators Chris Van Hollen, Ruben Gallego, Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed and Lisa Blunt Rochester.

Separately, Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, initiated a congressional inquiry earlier this week. He sent a letter to Binance CEO Richard Teng requesting internal records related to sanctions controls and compliance procedures.

The senators requested that federal agencies report back by March 13 with details on any steps taken to examine Binance’s conduct.

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Author

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

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