The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has levied a penalty of $14.09 million against Peken Global Limited, the operator of crypto exchange KuCoin.

Regulatory Violations by Peken Global

According to FINTRAC’s statement released on September 25, 2025, Peken Global failed to register as a foreign money services business and did not report large virtual currency transactions of approximately $7,183 or more. Additionally, the company did not submit suspicious transaction reports, which are mandatory for all financial institutions operating in Canada.

KuCoin Challenges FINTRAC’s Decision

In response to FINTRAC’s findings, KuCoin disagreed strongly with the agency’s conclusions and has appealed to the Federal Court of Canada. The company argues that a $14.09 million fine is excessive and punitive. Moreover, KuCoin claims it should not be classified as a foreign Money Services Business under Canadian law.

FINTRAC’s Oversight on Major Financial Institutions

Besides Peken Global, FINTRAC has also imposed fines on other significant financial institutions in Canada, including Royal Bank of Canada and TD Bank. TD Bank faced a $7.4 million penalty for inadequate Anti-Money Laundering (AML) policies. The bank responded by stating that it was enhancing its AML program and appointing experts to lead the initiative.

Recent FINTRAC Fines

In December 2024, FINTRAC fined Exchange Bank of Canada $2.46 million for similar issues. The agency found that the bank failed to submit suspicious transaction reports despite having valid reasons and inadequately monitored its business relationships. Additionally, it did not report single cash transactions exceeding $7,183.