Administrative monetary penalty on Pacesetter Marketing Ltd.
[2025-11-20]
Pacesetter Marketing Ltd., a real estate brokerage in Vancouver, British Columbia, was imposed an administrative monetary penalty of $41,085 on June 24, 2025, for committing 3 violations. The violations were found during the course of a compliance examination. Pacesetter Marketing Ltd. will pay the administrative monetary penalty in full and the case is closed.
Nature of violation
- Violation #1
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Failure 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 – Proceeds of Crime (Money Laundering) and Terrorist Financing Act, subsection 9.6(1) and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 156(1)(b)
FINTRAC determined that Pacesetter Marketing Ltd. failed to adequately document the following prescribed requirements in its compliance policies and procedures: client identification, business relationships and ongoing monitoring, beneficial ownership, politically exposed persons and heads of international organizations (PEP/HIO) and ministerial directives.
Pacesetter Marketing Ltd.’s policies and procedures did not mention the process it takes to verify client identity or the process it takes when it enters into a business relationship. Further, Pacesetter Marketing Ltd.’s policies and procedures did not specify the reasonable measures that it takes to make a PEP or HIO determination. Additionally, there was no process referenced by Pacesetter Marketing Ltd. to treat transactions originating from, or destined to, jurisdictions impacted by ministerial directives as high-risk, or any reference to measures taken specifically by Pacesetter Marketing Ltd. to mitigate the risk.
Violation #1 is classified by the regulations as a Serious violation. The imposed penalty takes into account the criteria in section 73.11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
- Violation #2
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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 the prescribed factors – Proceeds of Crime (Money Laundering) and Terrorist Financing Act, subsection 9.6(1) and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 156(1)(c)
FINTRAC determined that Pacesetter Marketing Ltd.’s documented risk assessment was incomplete. It did not assess and document the risks associated with the following prescribed factors: products and services, geography and clientele and business relationships. The documentation reviewed by FINTRAC during the examination did not contain Pacesetter Marketing Ltd.’s money laundering and terrorist financing risks for the prescribed factors. The document was a template that Pacesetter Marketing Ltd. filled out and only indicated the potential occurrence for a limited number of activities.
Violation #2 is classified by the regulations as a Serious violation. The imposed penalty takes into account the criteria in section 73.11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
- Violation #3
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Failure of a person or entity to institute and document the prescribed review – Proceeds of Crime (Money Laundering) and Terrorist Financing Act, subsection 9.6(1) and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 156(1)(f) and subsection 156(3)
FINTRAC determined that Pacesetter Marketing Ltd. did not complete a documented review of its compliance program for the purpose of testing the effectiveness of its policies and procedures, risk assessment, and training program, which was confirmed by Pacesetter Marketing Ltd. during the examination. The prescribed review is to be carried out, and the results documented, every two years.
Violation #3 is classified by the regulations as a Serious violation. The imposed penalty takes into account the criteria in section 73.11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
Related link
- Date Modified: