Region

Jurisdiction

Regulator

2023-08-10

FINTRAC imposes an administrative monetary penalty on The Centre Pacific Project Marketing Corp.

FINTRAC imposed a $57,915 administrative monetary penalty on Vancouver-based real estate broker The Centre Pacific Project Marketing Corp. for systemic non-compliance with Canada’s anti-money laundering and anti-terrorist financing regulations. The violations include failures to establish a designated compliance officer, develop and apply adequate policies for suspicious transaction reporting and client identity verification, conduct geographic and product risk assessments, and maintain required training and record-keeping programs. Issued under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the penalty aims to enforce regulatory adherence and encourage corrective action within the real estate sector.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

August 10, 2023—Ottawa— Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on The Centre Pacific Project Marketing Corp. This real estate broker in Vancouver, British Columbia, was imposed an administrative monetary penalty of $57,915 on May 23, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

The Centre Pacific Project Marketing Corp. was found to have committed the following violations:

Failure to ensure that an appointed person be responsible for implementing a compliance program;

Failure to develop and apply sufficient compliance policies and procedures for its regulatory obligations related to suspicious transaction reporting, terrorist property reporting, record keeping, verifying client identity, third party determination, as well as ongoing monitoring of all business relationships;

Failure to assess and document the money laundering or terrorist activity financing risks of its geographic locations, its new technologies, products and delivery channels, and clients and business relationships;

Failure to develop and maintain a written ongoing compliance training program;

Failure to institute and document the prescribed review of its policies and procedures, risk assessment and training program; and

Failure to keep prescribed records in respect of client information records.

Quote

“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. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”

Quick facts

As Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor, 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.

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, administrative monetary penalties are meant to be non-punitive and are issued to encourage change in the non-compliant behaviour of businesses.

In 2022–23, FINTRAC issued 6 Notices of Violation of non-compliance to businesses for a total of $1,113,569.

FINTRAC has imposed more than 125 penalties across most business sectors since it received the legislative authority to do so in 2008.