Region

Jurisdiction

Regulator

2025-09-18

FINTRAC imposes an administrative monetary penalty on Primary Capital Inc.

FINTRAC imposed a $93,390 administrative monetary penalty on Toronto-based exempt market dealer Primary Capital Inc. for violating Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The compliance examination revealed the firm failed to develop and maintain updated written compliance policies, conduct required risk assessments, perform prescribed reviews of its training program, and screen new clients for politically exposed persons. The penalty has been paid in full, concluding the enforcement proceedings while reinforcing FINTRAC’s mandate to ensure financial sector adherence to anti-money laundering obligations.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

September 18, 2025 — Ottawa

FINTRAC announced today that it has imposed an administrative monetary penalty on Primary Capital Inc. Following a compliance examination, Primary Capital Inc., an exempt market dealer headquartered in Toronto, Ontario, designated as a securities dealer, was imposed an administrative monetary penalty of $93,390 on May 15, 2025, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

Primary 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 institute and document the prescribed review of its policies and procedures, risk assessment and training program.

Failure to take reasonable measures within the prescribed period to determine whether a person for whom they open an account is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person.

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 works with businesses to help them understand and comply with their obligations under the Act. We are also 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 encourage change in the non-compliant behaviour of businesses.

In 2024–25, FINTRAC issued 23 Notices of Violation of non-compliance to businesses, the largest number in one year in the Centre’s history, for a total of more than $25 million.

FINTRAC has imposed more than 150 penalties across most business sectors since it received the legislative authority to do so in 2008.