Okcoin Europe Ltd, the European subsidiary of OKX Exchange, has been fined $1.2 million (€1.05 million) by Malta’s FIAU for anti-money laundering and compliance failures in 2023. The company has since taken corrective measures to address the deficiencies flagged in the review.
OKX Fined $1.2 Million by Malta’s FIAU for Anti-Money Laundering Failures
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Okcoin Europe Fined $1.2 Million by FIAU for Compliance Failures
Malta’s Financial Intelligence Analysis Unit (FIAU) has issued a $1.2 million (€1.05 million) fine to Okcoin Europe Ltd following a 2023 compliance review that uncovered significant shortcomings in the company’s risk assessment procedures.
The FIAU’s findings, released today, highlighted failures in money laundering risk assessments and transaction monitoring, though the exchange has since addressed these concerns.
The audit revealed that OKX European subsidiary’s business risk assessment was insufficient to effectively evaluate threats related to money laundering and terrorist financing. Additionally, nearly half of the customer accounts reviewed lacked proper risk assessments, and roughly 80% of transactions, totaling over $20 million, were not adequately scrutinized.
One case flagged by the FIAU involved a customer who, after minimal activity in previous years, suddenly deposited $1.8 million in under four months, far exceeding declared expectations.
Despite clear red flags, Okcoin did not initially investigate these transactions, only freezing the account in 2022 after failed attempts to obtain documentation. Following these findings, the company has taken proactive steps to improve its compliance framework.
