Region

Jurisdiction

Regulator

2024-09-24

FINTRAC imposes an administrative monetary penalty on 1000085532 Ontario Inc.

FINTRAC imposed a $57,750 administrative monetary penalty on real estate broker 1000085532 Ontario Inc. for failing to comply with anti-money laundering and terrorist financing regulations. The penalty addresses the firm's specific violations, including inadequate client due diligence, unassessed money laundering risks, and missing compliance program reviews. The broker has paid the full amount to close the case, highlighting FINTRAC's continued enforcement of regulatory obligations across Canada's financial sector.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

September 24, 2024 — Ottawa — Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on 1000085532 Ontario Inc., also operating as Right At Home Realty Inc. and Right at home Realty. Following a compliance examination in 2022, this real estate broker in North York, Ontario, was imposed an administrative monetary penalty of $57,750 on June 27, 2024, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

1000085532 Ontario Inc. was found to have committed the following administrative violations:

Failure to develop and apply its policies and procedures in practice in relation to know your client requirements, and ongoing monitoring of business relationships;

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

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 by 1000085532 Ontario Inc. 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.