- Malta’s Fiau has imposed a fine of $ 1.2 million on OKX for the lack of compliance with AML.
- The penalty follows the verification of compliance in April 2023, which revealed multiple violations.
The Malta Financial Intelligence Analysis Unit (FIAU) imposed a fine of $ 1.2 million on local OKX regulations to violate the anti -money laundering regulations in the island’s nation (AML).
The punishment comes after examining compliance at the site held in April 2023, which revealed a number of violations – some of which were dangerous and regular.
The fine is an important organizational test for OKX, which is one of the best exchanges of cryptocurrency in the world. FIAU report has defined the weaknesses in risk assessment, specifically with regard to the company’s commercial risk assessment (BRA) and the customer’s due care policy.
Financial Intelligence Analysis Unit I mentionedand
“Despite the shortcomings, the shortcomings of the company’s chest methodology were observed, making it unable to properly assess the risk of ML/FT, and have been subjected to the application of the required mitigation measures appropriately to manage it.”
FIAU investigation results
The compliance review of FIAU revealed multiple problems, including insufficient risk assessments on customer files. Half of customer profiles under review lacks a suitable evaluation of the risks, questioning the company’s compliance with AML guidance.
Moreover, FIAU reported contradictions in overseeing high -value transactions. Few levels of activity were higher than expected. It would have mostly raised some questions that needed a closer examination.
While the OKX business model focused mainly on consumers in Europe, FIAU highlighted the need to observe the potential exposure to the risk of money laundering from other judicial states.
Although there was a commercial risk assessment (BRA), FIAU reported that OKX measures were insufficient to determine and alleviate financial crime risks. The International Energy Agency emphasized that the effective bra should constantly evaluate the emerging threats and ensure compliance with the Malta AML framework.
OKX organizational status in Europe
Despite this organizational blow, OKX only Metni Mika license (markets in encrypted assets), allowing him to work legally in 28 countries from the European Economic Zone (EA).
This development puts OKX among the first encryption exchange to secure approval under the organizational framework of the new European Union, which seeks to coordinate encryption rules across member states. Moreover, the MICA OKX license allows to provide completely compatible services to more than 400 million possible users across Europe.
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