Region

Jurisdiction

Regulator

2023-05-24

FINTRAC imposes an administrative monetary penalty on Niavaran Canada Inc.

FINTRAC imposed a $57,255 administrative monetary penalty on Niavaran Canada Inc. for failing to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The money services business violated regulations by omitting electronic funds transfer reports, neglecting risk assessments for products and technologies, failing to document policy reviews and training, and not retaining required foreign exchange transaction records. This enforcement action demonstrates FINTRAC's commitment to ensuring regulated entities maintain strict compliance protocols to safeguard Canada's financial system from illicit activities.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

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

FINTRAC announced today that it has imposed an administrative monetary penalty on Niavaran Canada Inc., also operating as Niavaran Currency Exchange. This money services business in North York, Ontario was imposed an administrative monetary penalty of $57,255 on March 16, 2023 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

Niavaran Canada Inc. was found to have committed the following violations:

Failure to include the incoming Electronic Funds Transfer Reports information in the prescribed form and manner;

Failure to assess and document the money laundering or terrorist activity financing risk of its products and delivery channels, and its new technologies;

Failure to institute and document the prescribed review of its policies and procedures, risk assessment and training program; and

Failure to keep all prescribed information in foreign exchange transactions tickets.

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 regulator, 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 2021–22, FINTRAC issued 15 Notices of Violation of non-compliance to businesses for a total of $3,497,176.

FINTRAC has imposed more than 120 penalties across most business sectors since it received the legislative authority to do so in 2008.