Region

Jurisdiction

Regulator

2023-12-07

FINTRAC Imposes an Administrative Monetary Penalty on Canadian Imperial Bank of Commerce

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a $1,329,150 administrative monetary penalty on the Canadian Imperial Bank of Commerce for violating anti-money laundering regulations. The enforcement action follows a 2021 compliance examination that identified the bank's failure to file required suspicious transaction reports and incoming electronic funds transfer reports. CIBC has paid the penalty in full to resolve these administrative violations, which are separate from criminal money laundering or terrorist financing charges, thereby concluding the proceedings.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

December 7, 2023—Ottawa— Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on the Canadian Imperial Bank of Commerce (CIBC), also operating as Banque Canadienne Impériale de Commerce . Following a compliance examination in 2021, this bank in Toronto, Ontario, was imposed an administrative monetary penalty of $1,329,150 on October 23, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

The Canadian Imperial Bank of Commerce was found to have committed the following administrative violations:

Failure to submit a suspicious transaction report where there were reasonable grounds to suspect that transactions were related to a money laundering or terrorist activity financing offence; and

Failure to submit incoming electronic funds transfer reports with prescribed information.

This penalty was imposed for administrative violations committed by CIBC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations, and not criminal offences for money laundering or terrorist activity financing. The administrative monetary penalty has been paid in full by CIBC 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 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.