Binance Canada, a blockchain and cryptocurrency infrastructure provider, has announced that it will work with MinervaAI to detect and investigate financial crimes.
Post-partnership, Binance Canada will leverage Minerva’s artificial intelligence tools, extensive sanctions and other underwriting capabilities to enhance its Know Your Customer (KYC) and Anti-Money Laundering (AML) capabilities to support the development of comprehensive security and continue anti-fraud and AML compliance program in Canada.
MinervaAI is excited to partner with Binance Canada in the prospect of making crypto more secure and accessible for Binance’s customers, while making AI-driven AML compliance efficient, effective and affordable for their own customers.
As officials say, Binance Canada has a robust compliance program that includes AML efforts and global sanctions principles, as well as tools to proactively identify suspicious accounts and fraudulent activity. These tools meet the security standards of the tools commonly used in traditional financial institutions, and the company will leverage Minerva’s technology to enhance the strength of its KYC process.
The company’s compliance, KYC and know-your-business programs around the world have enabled Binance Canada’s parent company to secure approvals and registrations in France, Italy and Spain.
Binance’s active involvement in AML
As we found out from our recent Voice of the Industry article with Bexs Pay’s Vinícius Vieira, Binance is actively investigating Brazil to better understand the local market and improve its approach to preventing, investigating and fighting financial crimes.
Additionally, Binance hosts several thematic workshops with a range of government agencies to address the concepts underlying blockchain and crypto assets, as well as other topics. It also aims to raise awareness of Binance’s anti-money laundering (AML) policies. Attendees will learn more about the tools and processes the company offers to help government agencies fight cyber and financial crime related to digital assets. Binance has ended its partnership with Brazilian payments provider Capitual and a court case is currently underway to resolve the case. This situation reflects the complexity of the current regulatory framework and the fragility of some industry models and processes.
money laundering problems
Despite ongoing efforts to improve AML and KYC processes, the assets of WazirX, Binance’s Indian subsidiary, have been frozen by the country’s Economic Crime Investigation Department under the Anti-Money Laundering Act.
As the investigative unit found, despite being able to do so, WazirX has failed to meet the necessary Know Your Customer (KYC) requirements in exchange transactions. Before July 2020, they did not record the details of the bank account from which funds came into the exchange to buy crypto assets. No physical address verification was performed either. There was also no verification of their customers’ sources of funds. The company has not conducted increased due diligence and has not reported any suspicious transactions.
When news of the breach broke, Binance distanced itself from WazirX, making ownership of WazirX a hot topic. As representatives say, Binance only provides wallet services for WazirX as a technical solution and WazirX is responsible for all other aspects of the exchange including user sign-up, Know Your Customer (KYC), trading and initiating withdrawals.