FINTRAC: $19.5M Penalty Imposed on Peken Global Limited

• FINTRAC imposed a $19,552,000 administrative monetary penalty on Peken Global Limited for committing three violations.
• The entity, operating as KuCoin in Canada, failed to comply with anti-money laundering regulations, specifically by failing to register, report large virtual currency transactions, and submit suspicious transaction reports.
• Peken Global Limited has appealed the penalty to the Federal Court.
• This enforcement action serves as a warning to other entities operating in Canada to prioritize anti-money laundering compliance.

FINTRAC has taken a significant enforcement action against Peken Global Limited, imposing an administrative monetary penalty of $19,552,000 for committing three violations.

FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, has taken a significant enforcement action against Peken Global Limited, also known as KuCoin. The entity, incorporated in Seychelles but operating in Canada, has been slapped with an administrative monetary penalty of $19,552,000 on July 28, 2025, for committing three violations. This substantial fine is a clear indication of the severity with which FINTRAC views non-compliance with anti-money laundering regulations.

The violations include failure to register with FINTRAC as a foreign money services business, failure to report large virtual currency transactions of $10,000 or more, and failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to money laundering or terrorist financing offences. Peken Global Limited has appealed the penalty to the Federal Court. As a major player in the cryptocurrency space, KuCoin's operations in Canada have come under scrutiny, and this enforcement action serves as a warning to other entities operating in the country.

FINTRAC's authority to impose administrative monetary penalties is rooted in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This legislation empowers FINTRAC to take enforcement action against entities that fail to comply with anti-money laundering regulations, including reporting suspicious transactions and maintaining adequate customer due diligence procedures. The $19.5 million penalty imposed on Peken Global Limited is a testament to the effectiveness of this regulatory framework in ensuring compliance.

It's worth noting that FINTRAC has been actively pursuing enforcement actions against entities operating in Canada for non-compliance with anti-money laundering regulations. This trend suggests that the regulator is increasingly cracking down on entities that fail to meet their obligations, making it essential for businesses to review and strengthen their anti-money laundering compliance procedures.

The significant penalty imposed by FINTRAC on Peken Global Limited serves as a wake-up call for businesses operating in Canada. The sheer magnitude of the fine underscores the importance of adhering to anti-money laundering regulations, and the consequences of non-compliance can be severe. As lawyers advising clients with Canadian operations, it is essential to review their anti-money laundering compliance procedures to ensure they are meeting regulatory requirements.

This enforcement action also highlights the need for entities operating in Canada to prioritize anti-money laundering compliance. Failure to do so can result in substantial financial penalties and reputational damage. In light of this significant enforcement action, businesses must take proactive steps to strengthen their anti-money laundering controls and reporting procedures.

Lawyers advising clients with Canadian operations should review their anti-money laundering compliance procedures in light of this significant enforcement action by FINTRAC.

Source: Original reporting via News release: FINTRAC imposes an administrative monetary penalty on Peken Global Limited (KuCoin)