The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a USD 14.09 million fine on Peken Global Limited, the operator of crypto exchange KuCoin.
On 25 September 2025, FINTRAC released a statement in which it said that Peken Global failed to register as a foreign money services business, did not report large virtual currency transactions of approximately USD 7,183 or more, as well as did not submit suspicious transactions reports, as required for all financial institutions operating across Canada.
KuCoin, however, countered the agency’s decision, stating in a statement that it strongly disagreed with these findings. The company has appealed to the Federal Court of Canada, noting that the USD 14.09 million fine is excessive and punitive. Additionally, KuCoin mentioned that it should not be categorised as a foreign Money Services Business under Canadian law. Representatives from KuCoin posted on the social media platform X that they disagreed with FINTRAC’s conclusion on both substantive and procedural grounds.
FINTRAC keeps its eye on financial services companies
Besides Peken Global, FINTRAC also imposed fines on some of Canada’s largest lenders, including Royal Bank of Canada and TD Bank. The latter faced a USD 7.4 million penalty for faulty policies, with reports mentioning at that time that FINTRAC found TD Bank’s Anti-Money Laundering (AML) compliance to be unsatisfactory. At that time, the financial institution responded saying that it was prioritising improving its AML programme and appointing new executives and advisors with greater expertise to head those efforts, process redesign, and training.
More recently, in December 2024, FINTRAC fined Exchange Bank of Canada USD 2.46 million for similar reasons. The decision came after the agency found that the financial institution failed to submit suspicious transaction reports despite having reasonable grounds to do so and inadequately conducting ongoing monitoring of business relationships. Also, FINTRAC revealed that Exchange Bank of Canada did not report single cash transactions that exceeded USD 7,183.
