India’s Financial Intelligence Unit (FIU-IND) has levied a fine of 188.2 million rupees ($2.25 million) on Binance, a global cryptocurrency exchange, for alleged non-compliance with anti-money laundering laws.

According to Indian authorities, Binance, registered as an entity in the country, violated three sections of India’s Prevention of Money Laundering Act, 2002.

The FIU made this disclosure in a statement on its website on Thursday.

This adds to Binance’s current challenges, as it is already embroiled in a trial in Nigeria for alleged money laundering and tax evasion charges.

Binance faces legal scrutiny in Nigeria for allegedly laundering over $35 million and tax evasion.

Meanwhile, the Nigerian government has accused the cryptocurrency exchange of influencing foreign exchange rates, prompting stricter oversight of crypto trading platforms.

In February, Nigerian authorities detained two senior Binance executives: Nadeem Anjarwalla, a 37-year-old British-Kenyan regional manager for Africa, and Tigran Gambaryan, a 39-year-old American head of financial crime compliance at Binance.

Part of the document read: “Consequently, due to Binance’s ongoing provision of services to Indian clients and operations within India without adhering to its statutory obligations under the PMLA a Notice dated December 28, 2023, was issued to Binance pursuant to Section 13 of the Act, compelling Binance to demonstrate why appropriate action should not be undertaken against it for its dereliction of duties under the Act, despite its status as a Reporting Entity owing to its operations as a Virtual Digital Asset Service Provider (VDA SP),” India’s FIU said.

“After considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated. Consequently, the Director FIU-IND vide order dated 19th June 2024 in the exercise of powers under Section 13 PMLA, imposed a total penalty of Rs. 18,82,00,000 (Rupees Eighteen Crore Eighty Two Lakh Only) on the Binance with reference to the following violations committed by the Binance: Contravention of Section 12(1), PMLA rw Rules 7(1), PML Rules (i) Contravention of Section 12(1), PMLA rw Rules 3(1)(D) and 7(3), PML Rules () Contravention of Section 12(1), PMLA r’w Rule 8(2) PML Rules

“Furthermore, specific directions have also been issued to Binance to ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) of 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 for the prevention of money laundering activities and combating the financing of terrorism (AMLCFT).”