FINTRAC can issue on-the-spot penalties of up to $500,000 for not filing a suspicious transaction report, and pursue criminal charges carrying jail sentences for reporting entities and their directors, officers, agents, and employees.
To 2010, FINTRAC, has reported 34 non-compliance referrals to law enforcement for criminal prosecution. These non-compliance offenses can result in jail sentences of up to 5 years and fines of up to CAD 2 million. Officers, directors and agents of Reporting Entities can be liable for conviction on the described punishments if they directed, authorized, assented to, acquiesced, or participated in its commission (even if the Reporting Entity itself is not convicted).
Beginning on December 30, 2008, FINTRAC was granted the alternative to address non-compliance with monetary penalties (known as Administrative Monetary Penalties, or “AMPS”). The AML legislation act allows for maximum penalties of up to $100,000 for individuals and $500,000 for entities per violation. Penalties can be reduced by up to half by entering into and satisfying a compliance agreement with FINTRAC. If a Reporting Entity pays the fine, or enters into a compliance agreement with FINTRAC, they are deemed to have committed the violation, foregoing the right to appeal, and permitting FINTRAC to make public the Reporting Entity’s violation and the amount of the penalty imposed.
We have compiled a list of penalties published by FINTRAC below, along with the details of violations which gave rise to the penalties. Many of those violations related to an MSBs failure to maintain a current registration with FINTRAC, and failures related to the maintenance of training, policies and procedures, and risk assessments. In addition to those cases which are published, we have become aware of a significant number and value of penalties which have been set by FINTRAC, but not published. 15 of those have been mentioned by FINTRAC in public presentations.
If you are facing or potentially facing penalties and would like to check your options or speak with an expert check out this site: The FINTRAC Exam Defenders.ca
FINTRAC PENALTY TALLY: over $1,000,000
For more details about the 11th FINTRAC penalty made public (but not published by FINTRAC yet) against the B.C. Lottery Corporation, see our related blog article, and BCLC’s Notice of Appeal.
For more details about the 16th FINTRAC penalty made public (put not published by FINTRAC yet) against SaskGaming, see our related blog article.
Press Release: August 19, 2009
1. Lesbia Isabel Herrera, also operating as Envimaya, engaged in a money services business at 206-7121 St-Hubert in Montreal, Quebec, was issued a penalty of $3,560 on 29 June 2009, for committing one violation.
i) Failure of a prescribed person or entity to be registered with the Centre, in accordance with section 11.1 of the Proceeds of Crime Money Laundering and Terrorist Financing Act.
2. 1630035 Ontario Ltd., also operating as AM Exchange and AM Currency Exchange, and engaged in money services business at 6113 Yonge Street in North York, Ontario, that was issued a penalty of $3,940 on 29 June 2009, for committing one violation.
i) Failure of a prescribed person or entity to be registered with the Centre, in accordance with section 11.1 of the Proceeds of Crime Money Laundering and Terrorist Financing Act.
Press Release: December 14, 2009
3. SSCG International Trading Inc., is a money services business in Vaughan, Ontario, that was issued a penalty of $12,750 on 23 November 2009, for committing eight violations:
i) Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v) Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vi) Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information, in accordance with subsection 11.12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and sections 4(a) and 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vii) Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more, in accordance with section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 59(1)(b), 64(1), and 64(2)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii) Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: December 18, 2009
4. Ghanaco Group Ltd., also operating as Ghanaco Financial Services, and engaged in a money services business at 1280 Finch Avenue West, Suite 305, in North York, Ontario, was issued a penalty of $4,320 on 23 November 2009, for committing one violation:
i) Failure of a prescribed person or entity to be registered with the Centre.
Press Release: January 29, 2010
5. Giant Express Inc., also operating as Gigante Express, engaged in a money services business in North York, Ontario, was issued a penalty of $3,000 on 10 November 2009, for committing one violation:
i) Failure of a prescribed person or entity to be registered with the Centre.
Press Release: March 3, 2010
6. Homelife Effect Realty Inc., engaged in the business of a real estate broker in Hamilton, Ontario, was issued a penalty of $27,000 on 12 January 2010, for committing four violations:
i) Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
iii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: March 18, 2010
7. Bharat Money Exchange Ltd., engaged as a money services business in Surrey, British Columbia, was issued a penalty of $36,100 on 23 November 2009, for committing 10 violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure to provide, in accordance with a served notice, documents or other information reasonably required by an authorized person, which is contrary to subsection 63.1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
v. Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information, in accordance with subsection 11.12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and sections 4(a) and 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vi. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vii. Failure of a person or entity that is required to obtain, keep or create records to retain those records for a period of at least five years, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 69(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ix. Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more, in accordance with section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 59(1)(b), 64(1), and 64(2)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
x. Failure of a person or entity that is required to ascertain the identity of a person to set out prescribed information on the appropriate records in respect of the person, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 67 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: April 26, 2010
8. Glaxy International Canada Ltd., engaged as a money services business in Mississauga, Ontario, was issued a penalty of $17,380 on March 1, 2010, for committing eight violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a money services business to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to the subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vi. Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information, which is contrary to the section 11.13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 4(b) and section 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vii. Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instruments, which is contrary to the section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 65(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
Press Release: May 6, 2010
9. Weagle Realty Ltd., a real estate broker that acts as an agent in respect of the purchase or sale of real estate in Smith Falls, Ontario, was issued a penalty of $6,750 on 23 November 2009, for committing three violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: May 7, 2010
10. 1156907 Ontario Ltd., also operating as Fort Duty Free, engaged in a money services business in Fort Frances, Ontario, was issued a penalty of $ 6,000 on March 10, 2010 , for committing three violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: September 22, 2010
11. Nazar Singh Mangat, also operating as Manny Foreign Exchange Inc. and Manny Foreign X-Change, engaged in a money services business in Calgary, Alberta, was issued a penalty of $ 7,370 on July 23, 2010, for committing six violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity, to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of a money services business to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vi. Failure of a person or entity that is required to ascertain the identity of a person to set out prescribed information on the appropriate records in respect of the person, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 67 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
12. Sutlej Foreign Exchange Inc., engaged in the business of a money services business in Mississauga, Ontario, was issued a penalty of $ 8,450 on July 26, 2010, for committing six violations:
Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
i. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: November 19, 2010
12. Reza Eshghi, operating as Express Money Exchange, engaged in a money services business in Thornhill, Ontario, was issued a penalty of $3,190 on September 14, 2010, for committing one violation:
i. Failure of a prescribed person or entity to be registered with the Centre, which is contrary to section 11.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Press Release: November 24, 2010
13. Yasin Mohammad, also operating as CANPAK EXCHANGE, GREETINGS & GIFTS LTD., engaged in a money services business in Toronto, Ontario, was issued a penalty of $23,270 on October 7, 2010, for committing nine violations:
i. Failure to provide, in accordance with a served notice, documents or other information reasonably required by an authorized person, which is contrary to section 63.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
ii. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to the subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and to paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act]], taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information, which is contrary to subsection 11.12(1) of theProceeds of Crime (Money Laundering) and Terrorist Financing Act and sections 4(a) and 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vi. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vii. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 59(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ix. Failure of a money services business to keep prescribed records, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 30(e) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: February 18, 2011
14. Peoples Credit Union Limited, a savings and credit union in Innisfil, Ontario, was issued a penalty of $37,090 on February 2, 2011, for committing nine violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a prescribed person or entity, in respect of the activities considered by that the person or entity to pose high risk, to take prescribed special measures, which is contrary to subsection 9.6(3) of theProceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a financial entity to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 12(1)(b) (and Schedule 5 Part B5) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a financial entity to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 12(1)(c) and Schedule 6 of theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure to report an electronic funds transfer no later than five working days after the transfer, which is contrary to subsection 9(1) of theProceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 5(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vi. Failure to report a transaction for which a large cash transaction record must be kept, within 15 days after the transaction, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 5(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vii. Failure of a financial entity, where it opens an account, to keep prescribed records, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 14(c) and 14(c.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person for whom the financial entity opens an account is a politically exposed foreign person, which is contrary to subsection 9.3(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 54.2(a) of theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ix. Failure of a specified person or entity to take reasonable measures to obtain and, if obtained, keep a record of prescribed information, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 11.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: September 27, 2011
1. Services Financiers C.M. Inc., a money services business in Montreal, Quebec, was issued a penalty of $9,500 on August 2, 2011, for committing four violations.
i) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information, which is contrary to section 11.13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, paragraph 4(b) and section 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
2. Jory Capital Inc., securities dealer in Winnipeg, Manitoba, was issued a penalty of $28,500 on June 2, 2011, for committing four violations.
i) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of a person or entity to institute and document the prescribed review, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(e) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
FINTRAC can issue on-the-spot penalties of up to $500,000 for not filing a suspicious transaction report, and pursue criminal charges carrying jail sentences for reporting entities and their directors, officers, agents, and employees.
To 2010, FINTRAC, has reported 34 non-compliance referrals to law enforcement for criminal prosecution. These non-compliance offenses can result in jail sentences of up to 5 years and fines of up to CAD 2 million. Officers, directors and agents of Reporting Entities can be liable for conviction on the described punishments if they directed, authorized, assented to, acquiesced, or participated in its commission (even if the Reporting Entity itself is not convicted).
Beginning on December 30, 2008, FINTRAC was granted the alternative to address non-compliance with monetary penalties (known as Administrative Monetary Penalties, or “AMPS”). The AML legislation act allows for maximum penalties of up to $100,000 for individuals and $500,000 for entities per violation. Penalties can be reduced by up to half by entering into and satisfying a compliance agreement with FINTRAC. If a Reporting Entity pays the fine, or enters into a compliance agreement with FINTRAC, they are deemed to have committed the violation, foregoing the right to appeal, and permitting FINTRAC to make public the Reporting Entity’s violation and the amount of the penalty imposed.
We have compiled a list of penalties published by FINTRAC below, along with the details of violations which gave rise to the penalties. Many of those violations related to an MSBs failure to maintain a current registration with FINTRAC, and failures related to the maintenance of training, policies and procedures, and risk assessments. In addition to those cases which are published, we have become aware of a significant number and value of penalties which have been set by FINTRAC, but not published. 15 of those have been mentioned by FINTRAC in public presentations.
If you are facing or potentially facing penalties and would like to check your options or speak with an expert check out this site: The FINTRAC Exam Defenders.ca
FINTRAC PENALTY TALLY: over $1,000,000
For more details about the 11th FINTRAC penalty made public (but not published by FINTRAC yet) against the B.C. Lottery Corporation, see our related blog article, and BCLC’s Notice of Appeal.
For more details about the 16th FINTRAC penalty made public (put not published by FINTRAC yet) against SaskGaming, see our related blog article.
Press Release: August 19, 2009
1. Lesbia Isabel Herrera, also operating as Envimaya, engaged in a money services business at 206-7121 St-Hubert in Montreal, Quebec, was issued a penalty of $3,560 on 29 June 2009, for committing one violation.
i) Failure of a prescribed person or entity to be registered with the Centre, in accordance with section 11.1 of the Proceeds of Crime Money Laundering and Terrorist Financing Act.
2. 1630035 Ontario Ltd., also operating as AM Exchange and AM Currency Exchange, and engaged in money services business at 6113 Yonge Street in North York, Ontario, that was issued a penalty of $3,940 on 29 June 2009, for committing one violation.
i) Failure of a prescribed person or entity to be registered with the Centre, in accordance with section 11.1 of the Proceeds of Crime Money Laundering and Terrorist Financing Act.
Press Release: December 14, 2009
3. SSCG International Trading Inc., is a money services business in Vaughan, Ontario, that was issued a penalty of $12,750 on 23 November 2009, for committing eight violations:
i) Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v) Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vi) Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information, in accordance with subsection 11.12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and sections 4(a) and 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vii) Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more, in accordance with section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 59(1)(b), 64(1), and 64(2)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii) Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: December 18, 2009
4. Ghanaco Group Ltd., also operating as Ghanaco Financial Services, and engaged in a money services business at 1280 Finch Avenue West, Suite 305, in North York, Ontario, was issued a penalty of $4,320 on 23 November 2009, for committing one violation:
i) Failure of a prescribed person or entity to be registered with the Centre.
Press Release: January 29, 2010
5. Giant Express Inc., also operating as Gigante Express, engaged in a money services business in North York, Ontario, was issued a penalty of $3,000 on 10 November 2009, for committing one violation:
i) Failure of a prescribed person or entity to be registered with the Centre.
Press Release: March 3, 2010
6. Homelife Effect Realty Inc., engaged in the business of a real estate broker in Hamilton, Ontario, was issued a penalty of $27,000 on 12 January 2010, for committing four violations:
i) Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
iii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, in accordance with section 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: March 18, 2010
7. Bharat Money Exchange Ltd., engaged as a money services business in Surrey, British Columbia, was issued a penalty of $36,100 on 23 November 2009, for committing 10 violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure to provide, in accordance with a served notice, documents or other information reasonably required by an authorized person, which is contrary to subsection 63.1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
v. Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information, in accordance with subsection 11.12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and sections 4(a) and 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vi. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vii. Failure of a person or entity that is required to obtain, keep or create records to retain those records for a period of at least five years, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 69(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ix. Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more, in accordance with section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 59(1)(b), 64(1), and 64(2)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
x. Failure of a person or entity that is required to ascertain the identity of a person to set out prescribed information on the appropriate records in respect of the person, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 67 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: April 26, 2010
8. Glaxy International Canada Ltd., engaged as a money services business in Mississauga, Ontario, was issued a penalty of $17,380 on March 1, 2010, for committing eight violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a money services business to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to the subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vi. Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information, which is contrary to the section 11.13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 4(b) and section 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vii. Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instruments, which is contrary to the section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 65(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
Press Release: May 6, 2010
9. Weagle Realty Ltd., a real estate broker that acts as an agent in respect of the purchase or sale of real estate in Smith Falls, Ontario, was issued a penalty of $6,750 on 23 November 2009, for committing three violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: May 7, 2010
10. 1156907 Ontario Ltd., also operating as Fort Duty Free, engaged in a money services business in Fort Frances, Ontario, was issued a penalty of $ 6,000 on March 10, 2010 , for committing three violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: September 22, 2010
11. Nazar Singh Mangat, also operating as Manny Foreign Exchange Inc. and Manny Foreign X-Change, engaged in a money services business in Calgary, Alberta, was issued a penalty of $ 7,370 on July 23, 2010, for committing six violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity, to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of a money services business to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vi. Failure of a person or entity that is required to ascertain the identity of a person to set out prescribed information on the appropriate records in respect of the person, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 67 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
12. Sutlej Foreign Exchange Inc., engaged in the business of a money services business in Mississauga, Ontario, was issued a penalty of $ 8,450 on July 26, 2010, for committing six violations:
Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
i. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of a money services business to keep prescribed records, in accordance with section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 30 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: November 19, 2010
12. Reza Eshghi, operating as Express Money Exchange, engaged in a money services business in Thornhill, Ontario, was issued a penalty of $3,190 on September 14, 2010, for committing one violation:
i. Failure of a prescribed person or entity to be registered with the Centre, which is contrary to section 11.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Press Release: November 24, 2010
13. Yasin Mohammad, also operating as CANPAK EXCHANGE, GREETINGS & GIFTS LTD., engaged in a money services business in Toronto, Ontario, was issued a penalty of $23,270 on October 7, 2010, for committing nine violations:
i. Failure to provide, in accordance with a served notice, documents or other information reasonably required by an authorized person, which is contrary to section 63.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
ii. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to the subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and to paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act]], taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information, which is contrary to subsection 11.12(1) of theProceeds of Crime (Money Laundering) and Terrorist Financing Act and sections 4(a) and 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vi. Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vii. Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 28(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 59(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ix. Failure of a money services business to keep prescribed records, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 30(e) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: February 18, 2011
14. Peoples Credit Union Limited, a savings and credit union in Innisfil, Ontario, was issued a penalty of $37,090 on February 2, 2011, for committing nine violations:
i. Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii. Failure of a prescribed person or entity, in respect of the activities considered by that the person or entity to pose high risk, to take prescribed special measures, which is contrary to subsection 9.6(3) of theProceeds of Crime (Money Laundering) and Terrorist Financing Act and section 71.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii. Failure of a financial entity to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 12(1)(b) (and Schedule 5 Part B5) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv. Failure of a financial entity to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 12(1)(c) and Schedule 6 of theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
v. Failure to report an electronic funds transfer no later than five working days after the transfer, which is contrary to subsection 9(1) of theProceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 5(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
vi. Failure to report a transaction for which a large cash transaction record must be kept, within 15 days after the transaction, which is contrary to subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 5(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
vii. Failure of a financial entity, where it opens an account, to keep prescribed records, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 14(c) and 14(c.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
viii. Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person for whom the financial entity opens an account is a politically exposed foreign person, which is contrary to subsection 9.3(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 54.2(a) of theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ix. Failure of a specified person or entity to take reasonable measures to obtain and, if obtained, keep a record of prescribed information, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 11.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
Press Release: September 27, 2011
1. Services Financiers C.M. Inc., a money services business in Montreal, Quebec, was issued a penalty of $9,500 on August 2, 2011, for committing four violations.
i) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information, which is contrary to section 11.13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, paragraph 4(b) and section 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
2. Jory Capital Inc., securities dealer in Winnipeg, Manitoba, was issued a penalty of $28,500 on June 2, 2011, for committing four violations.
i) Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
ii) Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iii) Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.
iv) Failure of a person or entity to institute and document the prescribed review, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(e) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.