700 compliance teams strong by 2024

Binance plans to hire 1,000 new employees this year, with a substantial focus on compliance roles. A large portion of these hires are specifically aimed at expanding the company’s compliance team from its current 500 members to 700 by the end of 2024.

CEO Richard Teng, who is currently in the United States for talks with monitors and officials, shared those hiring goals in an interview with Bloomberg News in New York on Wednesday.

Focus on compliance

The Bloomberg report revealed that Binance is estimated to spend more than $200 million this year on regulatory compliance alone, including expenses related to the plea agreement with the US Department of Justice (DOJ). and other agencies.

The 55-year-old executive revealed the plans Binance has seen an increase in requests from law enforcement agencies worldwide, with 63,000 inquiries so far this year, compared to 58,000 from 2023.

Therefore, compliance-related spending, which was $158 million two years ago, is expected to rise further. Teng also mentioned that US-appointed monitors from Forensic Risk Alliance and Sullivan & Cromwell have begun their oversight, focusing on evaluating the company’s financial statements and tracking transactions. That follow-up is still in its early stages, the executive added.

For the uninitiated, Teng has served as lead regulator at the Monetary Authority of Singapore, as well as the city-state’s SGX stock exchange. He was also appointed chief executive of the Abu Dhabi International Financial Center regulator.

Highlighting his extensive regulatory experience, Teng stated:

“I’ve been a regulator all my life. Government agencies are important.”

However, Teng declined to confirm whether he had met with the Securities and Exchange Commission (SEC) during his current trip, as the securities regulator had sued Binance in a separate lawsuit for allegedly offering financial securities without required registration .

Regulatory issues in the US

Binance was ordered to pay $4.3 billion in fines after a US judge approved the plea deal in February as a settlement with the DOJ and other US agencies for compliance failures that allowed criminals and terrorist groups exploit the exchange.

As part of the settlement, Binance will undergo years of compliance monitoring by the DOJ and the US Treasury’s Financial Crimes Enforcement Network (FinCEN).

Last week, Binance announced it was resuming full operations in India after agreeing to a $2.25 million fine with India’s Financial Intelligence Unit. Additionally, the exchange reached a $1.75 million settlement with Brazil’s SEC, which had banned its derivatives in 2020.

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