The US Financial Crimes Enforcement Network (FinCEN), the Department of Justice (DOJ), and the Office of Foreign Assets Control (OFAC) have appreciated Binance’s compliance with all regulations and their respect for the regulatory authorities.
At the onset, Binance was not adequately equipped with the compliance requirements. However, when we turn to the present scenario, the company has put in all its effort to follow all the rules and regulations about its business in the US. It has now become a formidable competitor, having the total backing of all the concerned regulatory agencies.
The regulatory agencies, on their part, have been closely observing the company and the changes it makes to create a healthier space with them. OFAC, in particular, has given Binance a genuine thumbs up following its intensive investigation of the company and is pleased with the responses it received on all matters of inquiry. FinCen, after its interaction with Binance, totally agreed with the opinion. In the case of the DOJ, they lay stress on the corrective actions the company has carried out.
The corrective actions included the space of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). Binance has greatly invested in these areas, down to replacing ineffective personnel. Binance is known to have tied up with various intermediaries to track all transactions closely. They have hired the services of blockchain analytics companies as a further safeguard.
Regarding KYC, Binance ensures all users are required to strictly answer all queries with the utmost sincerity and honesty, leaving no room for misidentification. Proper identification of sanctioned individuals is carried out, and they cannot utilize the platform.
As per the OFAC settlement, they modified the compliance policies and brought Binance Sanctions to Manuel. The company must carry out a yearly risk management exercise and identify the actual location of sanctioned individuals.
According to the DOJ, Binance established geofencing activities in 2019 and is constantly reviewing the controls by utilizing an array of location detection tools, such as IP addresses, phone numbers, and mobile handsets. Added to that, the company is preventing accounts for users and carries out a holistic study of individuals trying to make their way to the platform.