A group of American senators has urged federal authorities to verify Binance’s compliance with AML regulations and international sanctions.
A group of 11 U.S. senators has formally requested that federal authorities launch an investigation into Binance’s compliance with anti-money laundering (AML) regulations and international sanctions. In a letter sent to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers called for a “timely and comprehensive review” of the exchange’s compliance controls and its adherence to the settlement agreements reached in 2023.
At the heart of the concerns are allegations that approximately $1.7 billion in digital assets were channeled through Binance to Iranian entities linked to terrorism, including groups connected to the Houthis and the Islamic Revolutionary Guard Corps. Investigators reportedly identified more than 1,500 accounts accessible by users in Iran, as well as potential activities related to the evasion of Russian sanctions.
The letter was signed by Senators Chris Van Hollen and Ruben Gallego, along with Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed, and Lisa Blunt Rochester. The letter also highlights that some Binance compliance employees who flagged suspicious transactions were subsequently dismissed, and that law enforcement agencies have encountered reduced cooperation from the exchange in the provision of customer information.
The senators also raised concerns about newer products offered by the exchange, including payment cards launched in parts of the former Soviet Union and partnerships tied to stablecoin initiatives, which they consider potential tools for circumventing sanctions. The letter calls on the relevant agencies to report back by March 13 on any measures taken to examine Binance’s conduct.
