Binance ‘Compliance Journey’s’ Latest Stop Is an IRS-Criminal Investigation’s Cop
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Binance ‘Compliance Journey’s’ Latest Stop Is an IRS-Criminal Investigation’s Cop

8 months ago

The cryptocurrency exchange has announced the hiring of another former financial crime enforcement veteran, Greg Monahan/

Binance ‘Compliance Journey’s’ Latest Stop Is an IRS-Criminal Investigation’s Cop

Inhaltsverzeichnis

The world’s largest cryptocurrency exchange has added yet another enforcement expert to its team as it responds from a series of attacks by regulators around the world.

Binance has hired Greg Monahan, a former IRS-Criminal Investigations division cop, as its new head of anti-money laundering compliance.
Bringing in Monahan, a 20-year veteran of U.S. government financial enforcement and investigation, is the latest in a series of moves by Binance as it “pivots” to what CEO Changpeng “CZ” Zhao calls a “proactive compliance” policy.

As a U.S. Treasury Criminal Investigator, Monahan “has led complex international investigations that have resulted in the takedown of some of the most prolific cybercriminals, nation-state actors and terrorist organizations,” Binance said. 

Monahan spent the last five years of his tenure at IRS-CI as a supervisory special agency and then acting assistant special agent in charge, leading investigations into tax-related financial crimes and money laundering.

"My efforts will be focused on expanding Binance's international anti-money laundering (AML) and investigation programs, as well as strengthening the organization's relations with regulatory and law enforcement bodies worldwide,” Monahan said in the announcement.

He added: "Binance has a strong culture of putting their users first, from providing market-leading products to supporting high-profile investigations that help make the crypto industry a safer place.”

Monahan joined Binance as Global Money Laundering Reporting Officer as Karen Leong, who held the position since 2018, moved up to become Binance’s director of compliance.

Noting that Monahan “brings a wealth of AML and investigations experience to Binance,” Zhao said his firm is “always expanding our capabilities to make Binance and the wider industry a safe place for all participants."

Change Under Fire

The Aug. 18 hire comes less than two weeks after Binance announced the policy as it stopped offering derivatives products like futures and options in Hong Kong in the wake of regulatory pressure. That was close on the heels of similar moves in Germany, Italy and the Netherlands. 

Regulators in Malaysia, the U.K., Japan and Thailand all ordered Binance to stop operating in their jurisdictions without a license over the summer.

Zhao promised the exchange would “help establish crypto compliance best practices worldwide,” when he announced the proactive compliance policy.

In the release, Binance said it has quintupled the size of its international compliance team and advisory board over the past two years. This includes the hiring of former eToro compliance chief Jonathan Farnell as Binance’s European Director of Compliance in July, and the addition of two former Financial Action Task Force executives Rick McDonell and Josée Nadeau as compliance and regulatory advisors. The FATF is an international advisory organization so influential that it effectively sets AML policy worldwide.

Binance also added former U.S. Senator Max Baucus, a Montana Democrat, as policy and government relations advisor.

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