Malta Regulator Slaps OKX with $1.2M Fine for Historical AML Failures

Malta Fines OKX Crypto Exchange $1.2 Million for AML Breaches

The Maltese Financial Intelligence Analysis Unit (FIAU) has slapped a fine of €1.04 million ($1.2 million) on crypto exchange OKX for repeated breaches of anti-money laundering (AML) regulations.

According to a statement released by the FIAU, the fine was imposed due to OKX's failure to properly implement and maintain effective AML controls, resulting in a significant risk of money laundering and terrorist financing.

The FIAU investigation found that OKX had failed to conduct adequate customer due diligence, had inadequate procedures for monitoring and reporting suspicious transactions, and had poor record-keeping practices.

The FIAU also found that OKX had failed to report suspicious transactions and had not conducted adequate risk assessments on its customers.

As a result of the breaches, the FIAU ordered OKX to take corrective action to address the AML deficiencies, including improving its customer due diligence procedures, enhancing its transaction monitoring and reporting, and implementing a more robust risk management framework.

OKX has 30 days to comply with the FIAU's orders or face further action, including potential criminal charges.

The fine is the latest in a series of regulatory actions taken against OKX, which has faced scrutiny from regulators around the world for its AML and KYC practices.

In recent months, OKX has faced fines and penalties from regulatory bodies in the United States, Canada, and Australia for similar AML and KYC breaches.

The FIAU's action against OKX serves as a warning to other crypto exchanges operating in Malta that the country's financial regulators will not tolerate AML breaches and will take swift and decisive action to protect the integrity of the financial system.