Canada's anti-money laundering agency fines crypto exchange KuCoin parent

By Nivedita Balu

TORONTO, Sept 25 (Reuters) - Canada's anti-money laundering agency has imposed its largest ever penalty of C$19.6 million ($14.09 million) on Peken Global Limited, operator of one of the world's largest cryptocurrency exchanges, KuCoin, the agency said on Thursday.

The Financial Transactions and Reports Analysis Centre of Canada said Seychelles-based Peken Global failed to register as a foreign money services business, neglected to report large virtual currency transactions of C$10,000 or more, and did not submit suspicious transaction reports, as required for all financial institutions.

KuCoin said in a statement it "strongly disagrees" with the agency's decision and has appealed to the Federal Court of Canada, noting that the fine is "excessive and punitive."

The company added that it should not be classified as a foreign Money Services Business under Canadian law.

"We disagree with this decision on both substantive and procedural grounds," CEO BC Wong said in a post on social media platform X.

The agency has also penalized some of the country's biggest lenders including Royal Bank of Canada RY.TO and TD Bank TD.TO.

Canada is preparing for an audit by Paris-based global financial crime watchdog Financial Action Task Force in November, which will include an assessment of the country's systems in place to reduce financial crime.

($1 = 1.3906 Canadian dollars)