Region

Jurisdiction

Regulator

2023-08-24

FINTRAC imposes an administrative monetary penalty on 857132 Ontario Limited

FINTRAC imposed a $99,314 administrative monetary penalty on Toronto-based 857132 Ontario Limited for non-compliance with Canada’s anti-money laundering and terrorist financing regulations. The enforcement action targets the dealer's failure to submit large cash transaction reports, appoint a compliance officer, develop written risk assessments and policies, and maintain a staff training program. This penalty reinforces FINTRAC’s mandate to ensure regulated entities uphold mandatory compliance regimes and reporting obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

August 24, 2023—Ottawa— Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on 857132 Ontario Limited, also operating as Diamonds For Less. This precious metals and precious stones dealer in Toronto, Ontario, was imposed an administrative monetary penalty of $99,314 on June 1, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

857132 Ontario Limited was found to have committed the following violations:

Failure to submit a large cash transaction report for the receipt of $10,000 or more in cash;

Failure to ensure that that an appointment person be responsible for implementing a compliance program;

Failure to develop written compliance policies and procedures;

Failure to assess and document the money laundering or terrorist activity financing risks; and

Failure to develop and maintain a written ongoing compliance training program.

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 is committed to working 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.