U.S. Senate Democrats on Feb. 27 asked the Treasury Department and the Justice Department to investigate whether Binance maintains effective controls against illicit finance and sanctions violations.
In a letter sent to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers called for a prompt and comprehensive review of the crypto exchange’s anti money laundering and sanctions compliance systems. They raised concerns that Binance may have failed to prevent transactions tied to sanctioned actors.
The senators requested a response outlining what steps the agencies plan to take and whether Binance remains in compliance with its prior legal obligations. They set a March 13 deadline for the departments to reply.
Lawmakers Cite Alleged Iran Linked Transactions
The letter pointed to recent reporting that alleged large volumes of digital assets flowed through Binance to entities linked to Iran. According to the lawmakers, compliance staff identified transactions totaling roughly $1.7 billion connected to Iranian actors, including groups tied to the Islamic Revolutionary Guard Corps and the Houthis.
In addition, the senators referenced claims that a Binance vendor processed about $1.2 billion in transactions involving Iran linked entities. They also cited allegations that more than 1,500 accounts connected to Iranian users accessed the platform despite U.S. sanctions.
The letter further raised concerns that Binance may have facilitated activity linked to Russian sanctions evasion. Lawmakers wrote that these claims, if accurate, suggest significant weaknesses in the company’s sanctions screening and monitoring systems.
Focus on 2023 Settlement Compliance
The senators also questioned whether Binance continues to comply with the terms of its 2023 settlement agreements with U.S. authorities. In November 2023, Binance and its founder agreed to resolve charges related to anti money laundering and sanctions violations, paying billions in penalties and accepting ongoing compliance monitoring.
Lawmakers asked Treasury and DOJ to examine whether Binance has upheld its obligations under those agreements. They also requested information about any internal retaliation against compliance staff who may have identified potential violations.
The letter emphasized that strong enforcement of sanctions and anti money laundering laws remains critical to U.S. national security. The senators urged federal authorities to ensure that crypto platforms operating globally follow the same standards applied to traditional financial institutions.
Source: https://coinpaper.com/15024/senate-democrats-urge-treasury-doj-to-probe-binance-over-sanctions-and-aml-controls
