- The U.S. Department of Justice (DOJ) has reportedly appointed a London-based consulting firm to serve as an outside monitor for Binance after the world’s largest crypto exchange pleaded guilty to violating US anti-money laundering (AML) regulations and sanctions laws.
- The DOJ has selected Forensic Risk Alliance (FRA) for the three-year monitorship of Binance over the previous frontrunner, New York-based law firm Sullivan & Cromwell, reports Bloomberg.
- One of the conditions of Binance’s plea deal in November is the appointment of an independent firm to monitor its compliance.
The U.S. Department of Justice appoints Forensic Risk Alliance as an outside monitor for Binance following the crypto exchange’s violation of US anti-money laundering regulations and sanctions laws.
DOJ Appoints Forensic Risk Alliance as Binance’s Monitor
The DOJ has chosen Forensic Risk Alliance (FRA), a London-based consulting firm, to monitor Binance for the next three years. This decision comes after Binance, the world’s largest crypto exchange, pleaded guilty to violating US anti-money laundering (AML) regulations and sanctions laws. The monitorship will give FRA access to Binance’s internal records, facilities, and employees, allowing them to report on the crypto exchange’s activities to the government.
Sullivan & Cromwell’s Role in the Monitorship
Previously, New York-based law firm Sullivan & Cromwell was the leading contender for the monitorship. However, controversies surrounding its ties with defunct crypto exchange FTX and its alleged failure to detect fraud perpetrated by the firm’s convicted co-founder, Sam Bankman-Fried, reportedly prompted the Justice Department to consider other options. Despite this, Sullivan & Cromwell is still expected to secure a separate five-year Binance monitorship on behalf of the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
FRA’s Previous Experience
FRA, which specializes in forensic accounting, data governance, and compliance consulting services, previously worked with Switzerland-based trading company Gunvor SA. They helped negotiate a $661 million settlement with the DOJ over a bribery case involving Ecuadorian officials. This experience may have contributed to their selection for the Binance monitorship.
Conclusion
The appointment of FRA as an outside monitor for Binance marks a significant step in ensuring the crypto exchange’s compliance with US regulations. With their expertise in forensic accounting and compliance consulting, FRA is well-positioned to oversee Binance’s operations and report any potential violations to the government. This development highlights the increasing scrutiny of crypto exchanges and the importance of regulatory compliance in the rapidly evolving crypto industry.
