Regulatory Alerts2025-10-22
FINTRAC imposes an administrative monetary penalty on Xeltox Enterprises Ltd
FINTRAC imposed a $176,960,190 administrative monetary penalty on Xeltox Enterprises Ltd., operating as Cryptomus, for systemic violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The virtual currency service provider was sanctioned for failing to report 1,518 large virtual currency transactions and 1,068 suspicious transactions during July 2024, which were connected to fraud, ransomware, sanctions evasion, and child sexual abuse material trafficking. This unprecedented enforcement action mandates immediate implementation of robust compliance controls to safeguard Canada’s financial system from illicit exploitation.
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