Binance has hired two former Financial Action Task Force (FATF) executives to provide high-level guidance on the exchange’s global compliance and regulatory strategies.
Former FATF Executive Secretary Rick McDonell and former Head of the Canadian Delegation to the FATF Josée Nadeau are tasked with strengthening the exchange’s anti-money laundering (AML) and combating financing of terrorism (CFT) efforts.
Binance adds more hands on deck
The pair brings extensive regulatory and compliance expertise and experience from their previous engagements with governments, the crypto industry, and international organizations such as FATF, the International Monetary Fund (IMF), the World Trade Organization (WTO), and many more.
In a joint statement, McDonell and Nadeau acknowledged that cryptocurrencies and blockchain technology are enjoying mainstream adoption.
“We are both delighted to be working with Binance, one of the leading organizations in this new industry, to ensure it has a world-class compliance and risk management program.”
Binance CEO Zhangpeng Zhao said the pair’s experience will be valuable to the exchange.
“We’re thrilled to welcome Josée and Rick to our team and look forward to their strategic guidance on international AML and CFT policies,” said Zhao.
“Their experience across significant global organizations will be of immense value to our team as we look to grow Binance and the industry in a sustainable manner.”
A timely appointment
The hiring of McDonell and Nadeau follows the hiring of Max Baucus to help the exchange navigate the U.S. regulatory landscape.
Mucus previously served in the U.S. Senate and was America’s Ambassador to China during the Barak Obama administration.
The recent appointment comes in as the exchange is being investigated by the Commodity Futures Trading Commission (CTFC) for allowing U.S. residents to trade derivatives on its platform.
Cryptonary reported that the CFTC did not accuse the exchange of any wrongdoing.
As bitcoin and its cousins gain mainstream adoption, authorities are laying down the law as they seek to regulate the industry.
Policing the crypto industry
The Financial Crimes Enforcement Network (FinCEN), an agency under the U.S. Treasury Department proposed a new rule that requires exchanges to collect identifying information of users who make certain transactions.
And it did not stop there.
Last year, the U.S. Securities and Exchange Commission (SEC) slapped Ripple, a fintech company affiliated with XRP, with a lawsuit for allegedly selling securities inappropriately.