TORONTO, Sept 25 (Reuters) - Canada's anti-money

laundering agency said on Thursday it had imposed a C$19.6

million ($14.09 million) penalty on Peken Global Limited, the

operator of one of the world's largest cryptocurrency exchanges

KuCoin.

The agency, the Financial Transactions and Reports Analysis

Centre of Canada (FINTRAC), said Seychelles-based Peken Global

failed to register as a foreign money services business, failed

to report large virtual currency transactions of C$10,000 or

more and did not submit suspicious transaction reports, a

requirement for all financial institutions.

The company did not immediately respond to a request for

comment.

The penalty is the largest that FINTRAC has ever imposed. The

agency has also penalized some of the country's biggest lenders

including Royal Bank of Canada ( RY ) and TD Bank.

Canada is preparing for an audit by Paris-based global

financial crime watchdog Financial Action Task Force in

November, which will include an assessment of the country's

systems in place to reduce financial crime.

($1 = 1.3906 Canadian dollars)