Administrative monetary penalty on Your Neighbourhood Credit Union Limited
[2026-09-24]
Your Neighbourhood Credit Union Limited, a provincial credit union headquartered in Kitchener, Ontario, was imposed an administrative monetary penalty of $16,500 on August 10, 2026, for committing 1 violation. The violation was found during the course of a compliance examination. Your Neighbourhood Credit Union Limited has paid 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 Your Neighbourhood Credit Union Limited’s documented policies and procedures were not applied adequately.
Your Neighbourhood Credit Union Limited has documented policies and procedures for handling production orders from law enforcement, including assessing and reporting suspicious transactions to FINTRAC. However, FINTRAC’s examination found that Your Neighbourhood Credit Union Limited did not consistently apply these policies and procedures when assessing the context and facts of a production order, which could impact the reporting of suspicious activity to FINTRAC.
Furthermore, FINTRAC’s examination revealed that Your Neighbourhood Credit Union Limited did not follow its documented policies and procedures pertaining to ongoing monitoring measures and frequencies established based on client risk levels. Specifically, among the ongoing monitoring records reviewed, approximately 76% contained deficiencies. These deficiencies included missing information on the nature of the principal business and beneficial ownership information for entity clients, the purpose and intended nature of the business relationship, determinations related to politically exposed person or head of international organization, client risk assessment updates, and documented measures taken and information obtained, including enhanced measures applied to high-risk clients.
Violation #1 is classified by 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: