FINTRAC imposes an administrative monetary penalty on the Royal Bank of Canada
December 5, 2023—Ottawa—Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
FINTRAC announced today that it has imposed an administrative monetary penalty on the Royal Bank of Canada (RBC). Following a compliance examination in 2022, this bank was imposed an administrative monetary penalty of $7,475,000 on November 3, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
Royal Bank of Canada was found to have committed the following three administrative violations:
- Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering offence;
- Failure to provide information in the prescribed form and manner in suspicious transactions reports; and
- Failure to keep written policies and procedures up to date.
This penalty was imposed for administrative violations committed by RBC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations, and not for criminal offences for money laundering or terrorist activity financing.
“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 supervisor, 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 2022–23, FINTRAC issued 6 Notices of Violation of non-compliance to businesses for a total of $1,113,569.
- FINTRAC has imposed more than 125 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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