November 6, 2020 – News Release: FINTRAC Announces Payment of an Administrative Monetary Penalty
FINTRAC announced today that it received payment of $147,015 for an administrative monetary penalty that the Centre had imposed on Loto-Québec in 2014, and which was the subject of a legal challenge. FINTRAC imposed the penalty for the following administrative deficiencies related to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations:
- Failure to document the prescribed review of its compliance program;
- Failure to report a suspicious transaction; and
- Failure to properly report the occupation of a client in the case of casino disbursements reports.
These administrative deficiencies were found in a compliance examination held in 2012. FINTRAC determined in a subsequent examination in 2016 that Loto-Québec had moved to address these specific deficiencies.
“FINTRAC is committed to working with businesses to help them understand and comply with their obligations under the Act. At the same time, they need to understand that 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, and that we will be firm in ensuring that they do their part.”
- As Canada's financial intelligence unit, 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.
- FINTRAC has levied penalties in most business sectors that have obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act since it received the authority to do so in December 2008.
- FINTRAC has completed a review of its Administrative Monetary Penalties policy to ensure that it has one of the most open and transparent penalty programs of its kind, including in relation to penalty calculations.
- With the changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act included in the Act to implement the 2019 federal budget, FINTRAC is required, going forward, to make public the name of all persons and entities that receive an administrative monetary penalty.
Financial Transactions and Reports Analysis Centre of Canada
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