CoinList pays $1.2 million to settle OFAC-related sanctions violations

CoinList has agreed to pay $1,207,830 to settle potential civil liability for 989 transactions it processed for Crimean residents between April 2020 and May 2022, which were deemed to violate the Russian/Ukrainian sanctions regulations of the US Treasury Department's Office of Foreign Assets Control (OFAC). Between April 19, 2020 and May 7, 2022, CoinList had a total of 989 apparent violations of Ukrainian/Russian sanctions regulations, involving approximately $1,252,280. OFAC determined that while these violations were not voluntarily self-disclosed, they were not willful. According to OFAC's Economic Sanctions Enforcement Guidelines, the final settlement amount is $1,207,830.Founded in 2017, CoinList is a currency service business that primarily serves as an intermediary for users to buy, sell, and convert various cryptocurrencies. Users are required to provide certain Know Your Customer (KYC) information, such as country of residence, address, date of birth, phone number, selfie, and government-issued identification photo, when opening a CLM account and digital wallet. However, CoinList's screening procedures failed to identify users who claimed to reside in non-sanctioned countries but provided Crimean addresses.