Binance Complying With Anti-Money Laundering And Terrorism For Israel Accounts

Key Points:

• Binance denied the Reuters article with the implication that the exchange allowed crypto-based terrorist financing accounts to operate.
• To answer this question the exchange affirms that its policies and procedures meet the requirements of anti-money laundering and terrorist financing.
• Earlier, Reuters shared an article about documents showing that Israel seized Binance crypto accounts to stop ISIS.

In response to a Reuters report today questioning Binance’s compliance policies in preventing and dealing with terrorist financing, the exchange has released an official comment. Binance alleged that a reporter from Reuters intentionally omitted important events to comply with their policy.

“Our policies and processes comply with AMLD5/6 anti-money laundering and counter terrorism financing requirements and we have a robust compliance program that integrated sophisticated anti-money laundering and global sanctions principles and tools to detect and address suspicious activity. on our team who have focused their entire careers on counter-terrorism.”

Binance says an often overlooked fact is that once a transaction is verified on the blockchain, a crypto exchange cannot block or reverse a digital asset deposit. The real measure of a crypto exchange’s compliance is that it recognizes suspicious deposits and the steps it takes to deal with them.

When the exchange detects bad behavior, it intervenes and takes appropriate action, including freezing funds and cooperating with law enforcement to assist with investigations. Regarding Organizations specifically, just to clarify, the bad guys don’t sign up for accounts in the name of their criminal enterprise.

“With regard to the specific organizations mentioned in the article, it’s important to clarify that bad actors don’t register accounts under the names of their criminal enterprises. This is why our team collaborates with law enforcement, and leverages information that is only available to them in order to identify individuals operating accounts for illegal organizations.”

Currently, the world’s largest cryptocurrency exchange has over 750 compliance support staff, many with prior experience in law enforcement and regulators. So far this year, the exchange has helped law enforcement freeze/seize over $1 billion. Nearly half of our compliance team is involved in sanctions control work such as anti-money laundering, name screening, Know Your Customer (KYC) referrals, and on-chain monitoring.

Hours earlier, as reported by Reuters, documents show that since 2021, Israel has seized about 190 crypto accounts on the Binance cryptocurrency exchange, including two believed to have linked to the Islamic State (IS) and dozens of other accounts believed to be Palestinian. It is known that the company is affiliated with the Islamic group Hamas.

On January 12, the NBCTF seized two Binance accounts and their contents, according to a document on the website of Israel’s National Agency for Combating the Financing of Terrorism (NBCTF). NBCTF said on its website that the arrest was intended to “prevent” ISIS’ “activities” and “reduce their ability to achieve their goals”. The NBCTF document, which has never been previously reported, does not provide any details about the value of the seized cryptocurrencies or how the accounts are linked to the Islamic State.

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