CoinList pays $1.2 million in settlement for violating OFAC-related sanctions

ChainCatcher news, CoinList has agreed to pay $1,207,830 to settle potential civil liabilities arising from 989 transactions processed for permanent residents of Crimea between April 2020 and May 2022. These transactions are reported to have violated the Russian/Ukrainian sanctions regulations of the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). CoinList engaged in 989 apparent violations of the Ukraine/Russia-related sanctions regulations, involving approximately $1,252,280, from April 19, 2020, to May 7, 2022. OFAC determined that these violations were not voluntarily disclosed but were also not willful. According to OFAC's economic sanctions enforcement guidelines, the final settlement amount is $1,207,830.

CoinList was founded in 2017 as a money services business, primarily serving as an intermediary for users to buy, sell, and convert various cryptocurrencies. When users open CLM accounts and digital wallets, they are required to provide certain Know Your Customer (KYC) information, such as country of residence, address, date of birth, phone number, selfie, and a government-issued identification photo. However, CoinList's screening procedures failed to identify users who claimed to reside in non-sanctioned countries but actually provided a Crimea address.