Region

Jurisdiction

Regulator

2025-05-13

FINTRAC imposes an administrative monetary penalty on Marouf Management Inc

FINTRAC has imposed a $249,480.50 administrative monetary penalty on Toronto-based Marouf Management for failing to comply with Canada’s anti-money laundering and anti-terrorist financing regulations. Following a 2023 compliance examination, the money services business was found to have committed multiple administrative violations, including the failure to implement updated compliance policies, assess money laundering risks, maintain required records, and properly register with the regulator. The penalty underscores FINTRAC’s commitment to enforcing the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and ensuring that financial entities actively mitigate risks to Canada’s economic security.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

May 13, 2025 — Ottawa — Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on Marouf Management Inc., also operating as Marouf Currency Exchange and 1998063 Ontario Inc. Following a compliance examination in 2023, this money services business in Toronto, Ontario, was imposed an administrative monetary penalty of $249,480.50 on November 4, 2024, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

Marouf Management Inc. was found to have committed the following administrative violations:

Failure to develop and apply written compliance policies and procedures that are kept up to date;

Failure to assess and document the risk of a money laundering or terrorist financing offence;

Failure to comply with a ministerial directive;

Failure to keep prescribed records;

Failure to register as a money services business in the prescribed manner and with the prescribed information; and

Failure to submit notification of change to money services business registration.

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