Forensic Risk Alliance and Sullivan & Cromwell selected as independent monitors for $4.3 billion settlements

  • Binance, the world’s largest crypto exchange by trading volume, has appointed two separate independent compliance monitors as part of its settlements with U.S. regulators over money-laundering and sanctions violations.
  • Frances McLeod from Forensic Risk Alliance will serve as an independent monitor for three years, while Sharon Cohen Levin from Sullivan & Cromwell will serve for five years.
  • The settlements include requirements such as ensuring Binance has fully exited the U.S. market and creating an effective anti-money-laundering program.

U.S. regulators have appointed two separate compliance monitors to oversee Binance’s adherence to the requirements set forth in its $4.3 billion settlements with U.S. prosecutors and FinCEN. The exchange pleaded guilty in November for violating anti-money-laundering laws and sanctions rules. The two monitors will work together to ensure Binance meets compliance standards, including exiting the U.S. market and implementing an effective anti-money-laundering program.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Binance’s appointment of independent compliance monitors as part of its settlement with U.S. prosecutors and FinCEN for money-laundering and sanctions violations. It includes relevant details about the backgrounds of the appointed monitors, their roles, and potential challenges in coordination between them. The article also discusses the implications of this event on Binance’s compliance program and the wider industry.
Noise Level: 6
Noise Justification: The article provides relevant information about Binance’s appointment of independent compliance monitors due to money-laundering and sanctions violations but includes some repetitive information and could benefit from more in-depth analysis or discussion on the implications of these events for the cryptocurrency industry.
Public Companies: Binance (Not available), HSBC Holdings (Not available)
Private Companies: Forensic Risk Alliance,Sullivan & Cromwell,Exiger,Carlyle Group,Insight Partners
Key People: Frances McLeod (Founding Partner at Forensic Risk Alliance), Sharon Cohen Levin (Partner at Sullivan & Cromwell), Veronica Root Martinez (Law Professor at Duke University School of Law), Noah Perlman (Compliance Chief at Binance)

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Financial Relevance: Yes
Financial Markets Impacted: Cryptocurrency exchange Binance, U.S. Justice Department, Treasury Department’s Financial Crimes Enforcement Network, financial institutions and other companies
Financial Rating Justification: The article discusses the appointment of independent compliance monitors for cryptocurrency exchange Binance due to money-laundering and sanctions violations, which has implications on the financial industry and can impact the operations of the company and related entities. The settlements involve fines totaling $4.3 billion, and the monitors will ensure that Binance meets the requirements set forth in their agreements with U.S. prosecutors and FinCEN.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of any extreme event in the article. It primarily discusses the appointment of compliance monitors for cryptocurrency exchange Binance to ensure it meets the requirements set forth in its settlements over money-laundering and sanctions violations.·

Reported publicly: www.wsj.com