FINTRAC imposes an administrative monetary penalty on Industrial and Commercial Bank of China (Canada)
FINTRAC announced today that it has imposed an administrative monetary penalty on the Industrial and Commercial Bank of China (Canada), also operating as ICBC (Canada), ICBK (Canada) and ICBK. Following a compliance examination in 2019, this bank in Toronto, Ontario, was imposed an administrative monetary penalty of $701,250 on October 4, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
The Industrial and Commercial Bank of China (Canada) was found to have committed the following administrative violations:
- Failure to treat activities in respect of some entities as high risk and to take the prescribed special measures;
- Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering or a terrorist financing offence; and
- Failure to institute and document the prescribed review of some areas of its compliance policies and procedures.
The administrative monetary penalty has been paid in full by the Industrial and Commercial Bank of China (Canada) and the case is closed.
"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 is committed to working with businesses to help them understand and comply with their obligations under the Act. At the same time, we will 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 regulator, 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's Administrative Monetary Penalties program is one of the most open and transparent of its kind, including in relation to penalty calculations.
- With the changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in 2019, FINTRAC is required 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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