FINTRAC imposes an administrative monetary penalty on Wealth One Bank of Canada
March 6, 2023—Ottawa—Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
FINTRAC announced today that it has imposed an administrative monetary penalty on Wealth One Bank of Canada. This bank in Toronto, Ontario, was imposed an administrative monetary penalty of $676,500 on February 15, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
Wealth One Bank of Canada was found to have committed the following administrative violations:
- Failure to develop compliance policies and procedures related to ministerial directives, ongoing monitoring of business relationships, as well as failure to apply in practice policies and procedures related to record-keeping;
- Failure to assess and document the money laundering or terrorist activity financing risks of its geographic locations, as well as products and delivery channels;
- Failure to institute and document the prescribed review of some requirements related to record-keeping; and
- Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering offence.
These administrative deficiencies are not related to money laundering or terrorist financing offences. The administrative monetary penalty has been paid in full by Wealth One Bank of Canada and the case is closed.
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
- As Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing regulator, FINTRAC ensures that businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act comply with their obligations under the Act and its Regulations. The Centre also analyzes information and discloses financial intelligence to police, law enforcement and national security agencies to assist their investigations of money laundering, terrorist activity financing and threats to the security of Canada.
- Casinos, financial entities, money services businesses, real estate brokers and sales representatives and several other business sectors are required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to keep certain records, identify clients, maintain a compliance regime and report certain financial transactions to FINTRAC.
- Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administrative monetary penalties are meant to be non-punitive and are issued to encourage change in the non-compliant behaviour of businesses.
- In 2021–22, FINTRAC issued 15 Notices of Violation of non-compliance to businesses for a total of $3,497,176.
- FINTRAC has imposed more than 120 penalties across most business sectors since it received the legislative authority to do so in 2008.
Financial Transactions and Reports Analysis Centre of Canada
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