FINTRAC Fines Cryptomus C$176.96M for AML Failures

Canada’s financial intelligence agency, FINTRAC, has levied a record C$176.96 million (about US$126 million) fine against Xeltox Enterprises Ltd., which operates the Cryptomus crypto platform, for widespread anti–money‑laundering compliance failures. FINTRAC found the firm failed to submit 1,068 suspicious transaction reports in July 2024, did not report virtual‑currency receipts over C$10,000 on more than 1,500 occasions, and failed to report 7,557 transactions originating from Iran between July and December 2024. The regulator said numerous violations were linked to laundering tied to trafficking in child sexual abuse material, darknet markets, fraud, ransomware payments and sanctions evasion, calling the enforcement action “unprecedented.” FINTRAC Director and CEO Sarah Paquet said the agency is working with domestic and international partners to protect Canadians and the economy. The penalty is the largest in FINTRAC’s history — far above the previous record of roughly C$20 million — and comes as Canada faces an upcoming Financial Action Task Force audit of its anti‑financial‑crime measures.