Region

Jurisdiction

Regulator

2025-06-12

FINTRAC imposes an administrative monetary penalty on Hub Capital Inc.

FINTRAC imposed a $99,000 administrative monetary penalty on Woodbridge-based wealth management firm Hub Capital Inc. for failing to comply with Canada’s anti-money laundering and terrorist financing regulations. The securities dealer was cited for neglecting to establish updated compliance policies, conduct documented risk assessments, maintain a staff training program, and perform required internal reviews. The penalty has been paid in full, concluding the enforcement action under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

June 12, 2025 — Ottawa — Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on Hub Capital Inc. Following a compliance examination in 2023, this independent wealth management firm in Woodbridge, Ontario, considered as a securities dealer, was imposed an administrative monetary penalty of $99,000 on March 21, 2025, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

Hub Capital Inc. was found to have committed the following violations:

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.

Failure to assess and document the risk of a money laundering or terrorist financing offence, taking into consideration prescribed factors.

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.

The administrative monetary penalty has been paid in full and proceedings have ended.

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 will continue to work 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 associated Regulations. The Centre also analyzes information and discloses financial intelligence to law enforcement and national security agencies to assist their investigations of money laundering, terrorist activity financing, sanctions evasion 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, including international electronic funds transfers, large cash transactions, large virtual currency transactions and suspicious transactions.

Suspicious transaction reporting, in particular, is critical to FINTRAC’s ability to generate actionable financial intelligence for Canada’s law enforcement and national security agencies.

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 2023–24, FINTRAC issued 12 Notices of Violation of non-compliance to businesses for a total of $26,115,999.50.

FINTRAC has imposed more than 140 penalties across most business sectors since it received the legislative authority to do so in 2008.