Administrative monetary penalty on 1135233 B.C. Ltd.
[2025-11-20]
1135233 B.C. Ltd., also operating as LeHomes Realty Premier, a real estate brokerage in Vancouver, British Columbia, was imposed an administrative monetary penalty of $149,886 for committing six violations. 1135233 B.C. Ltd will pay the administrative monetary penalty in full and the case is closed.
Nature of violation
- Violation #1
-
Failure to report suspicious transactions – section 7 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
FINTRAC determined that 1135233 B.C. Ltd. failed to submit a suspicious transaction report when there were reasonable grounds to suspect that transactions were related to the commission or attempted commission of a money laundering or terrorist activity financing offence. FINTRAC identified transactions that were conducted and attempted by clients where numerous money laundering and terrorist financing indicators were present. The indicators included transactional activity inconsistent with the client's apparent financial standing, their usual pattern of activities or occupational information, the client did not want to put his or her name on any document that would connect him or her with the property and transactions involving a person who lives in a location of concern, which can include jurisdictions where there are ongoing conflicts (and periphery areas), countries with weak money laundering or terrorist activity financing controls, or countries with highly secretive banking or other transactional laws, such as transfer limits set by a government. These indicators demonstrate that 1135233 B.C. Ltd. had reasonable grounds to suspect that the transactions conducted by the clients were in line with those related to the commission or attempted commission of a money laundering or terrorist financing offence.
Violation #1 is classified by the regulations as a Very 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
-
Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program – Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 71(1)(a)
1135233 B.C. Ltd. did not ensure that the appointed person was responsible for implementing a compliance program. 1135233 B.C. Ltd.’s failure to ensure the appointed individual had the resources and knowledge to fulfill their duties may have contributed to gaps in the development and implementation of its compliance program and may have led to various record keeping deficiencies. These weaknesses identified in 1135233 B.C. Ltd.’s compliance program may have also resulted in their failure to report a suspicious transaction to FINTRAC.
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
-
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 Regulations, paragraph 71(1)(b)
FINTRAC determined that 1135233 B.C. Ltd. did not document the necessary measures in its compliance policies and procedures to meet all of its obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. Specifically, 1135233 B.C. Ltd did not sufficiently develop and apply compliance policies and procedures for its regulatory obligations relating to record keeping, third party determination, business relationship and ongoing monitoring.
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.
- Violation #4
-
Failure to assess and document the risk of a money laundering or terrorist financing offence, taking into consideration prescribed factors – Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 71(1)(c)
FINTRAC determined that 1135233 B.C. Ltd.’s risk assessment failed to take into consideration the prescribed factors of its products and delivery channels, its geographic location and its clients and business relationships.
Violation #4 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 #5
-
Failure to develop and maintain a written ongoing compliance training program – Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 71(1)(d)
FINTRAC determined that 1135233 B.C. Ltd.’s written ongoing compliance training program was not fully documented as it was missing key components. Furthermore, the documentation lacked evidence confirming that training was effectively delivered to agents and employees, as required by its own policies and procedures.
Violation #5 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 #6
-
Failure to keep prescribed records – Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 39(1)(b)
FINTRAC determined that 1135233 B.C. Ltd. did not keep complete client identification records. More specifically, 1135233 B.C. Ltd failed to record all of the required information to identify a person or entity or the information that was recorded was not complete nor sufficiently detailed, such as the address or occupation.
Violation #6 is classified by the regulations as a Minor 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: