Play by the Rules: Overview of Binance’s Compliance Program

Recognizing the central role of compliance in protecting users and promoting the adoption of digital assets, Binance has developed a comprehensive compliance program to address the cryptocurrency industry’s most pressing issues. In recent years, Binance has expanded its compliance team to more than 750 core professionals. As the team expands, Binance continues to invest in growing its technology and professional capabilities to meet the challenges of the evolving industry.

Today, Binance’s compliance team operates in a similar structure to those found at other large financial institutions. But what makes Binance unique is that its team members bring their own unique experience and expertise to their respective positions and work closely with Binance’s product and technology teams to effectively manage risk. The compliance team brings together professionals from diverse backgrounds, including former law enforcement officials, as well as compliance experts from regulators, the cryptocurrency industry, fintech and traditional banking.

Department structure

Binance’s compliance team is divided into several dedicated departments, each responsible for specific functions and areas of expertise. Departments include Financial Crime, Global Money Laundering Reporting Officer (GMLRO), Sanctions/Anti-Bribery and Anti-Corruption/Counter-Terrorism Financing, Corporate Compliance, Customer Due Diligence, High-Risk Customer and Transaction Monitoring, among others.

Financial Crime Compliance

The Financial Crimes Compliance Team is a very important part of Binance’s compliance program. Comprised of approximately 150+ dedicated employees, the team is the front line in proactively investigating illegal activity on the platform. The team actively combats financial crimes such as money laundering, fraud, and terrorist financing, and has made positive contributions to protecting Binance and its users from various potential risks.

Financial Crimes team members have diverse responsibilities and work together to effectively identify, investigate and report potential financial misconduct. Member positions include investigators, a dedicated team responsible for handling suspicious activity reports, a global training team and a law enforcement team that handles approximately 1,300 requests per week. The Financial Crime Compliance Team regularly organizes training sessions where Binance experts share their experiences in preventing and investigating cybercrime with law enforcement officials from around the world.

Global Money Laundering Report

The Global Money Laundering Reporting Officer (GMLRO) team plays a vital role in ensuring compliance with anti-money laundering (AML) regulations. The team consists of four regional leaders and more than 60 professionals who work diligently to carefully detect, monitor and prevent potential money laundering-related activities. They also work closely with local financial intelligence units, regulators and law enforcement agencies to report and assist in the investigation of suspects and suspicious transactions. In addition, the GMLRO team closely monitors the ever-changing regulatory landscape to ensure that Binance fully complies with applicable laws and regulations.

Sanctions/Anti-bribery and anti-corruption/Counter-terrorism financing

The Sanctions, Anti-Bribery and Anti-Corruption (ABC) and Counter-Terrorism Financing (CTF) teams within the Compliance Department are responsible for developing and maintaining policies and controls to mitigate risks associated with breaches of applicable sanctions regimes, anti-bribery and anti-corruption laws and Counter-Terrorism Financing measures. The team continues to monitor legal changes relevant to their areas of expertise and ensures that all prohibitions are incorporated into Binance’s policies and procedures. Through these measures, the team defines acceptable risk levels for the organization and guides business partners to deter bad actors and protect the platform from bad actors engaged in illegal activities.

Corporate Compliance

Binance’s corporate compliance team is composed of professionals with diverse backgrounds in the cryptocurrency industry, payments industry, and traditional banking industry. They use compliance and risk management expertise to become the “second line” of institutional defense.

The team is responsible for multiple areas, including monitoring and testing of compliance controls; handling regulatory reviews and audits of Binance licensed businesses; ensuring compliance controls are incorporated into all Binance products and services; overseeing third-party due diligence efforts; developing enterprise-wide and country-level AML/CFT risk assessments, issue management and governance measures, and organizing and overseeing mandatory company-wide compliance training.

Customer due diligence

The Binance Customer Due Diligence (CDD) team is responsible for implementing strong identity verification (KYC) and business certification (KYB) programs. Binance uses these two programs to authenticate customers and corporate partners to effectively prevent fraud, identity theft, money laundering and other illegal activities. The CDD team is also ensuring compliance with applicable regulatory requirements while taking into account the need for a good user experience.

high risk customers

The primary responsibility of the High Risk Accounts Team is to oversee enhanced due diligence for clients and businesses classified as high risk. They work closely with the CDD team to develop stricter authentication measures and monitor the activities of such users, thereby further reducing the risk of illegal activity on the platform.

The team also provides consultation to colleagues on the first line of defense on issues such as establishing a verification process for the source of funds and wealth for retail investors and the assessment of AML programs and regulatory licenses for Binance Enterprise customers.

Transaction monitoring

Binance’s transaction monitoring team is responsible for auditing transactions for potential money laundering and terrorist financing activities. They use cutting-edge technology and sophisticated analytical tools to monitor suspicious behavior and identify potential risks. The team plays a vital role in maintaining the integrity of the platform and ensuring compliance with global regulations related to money laundering and terrorist financing. The team consists of 18 leaders and 175 analysts in the fiat and cryptocurrency fields.