Region

Jurisdiction

Regulator

2022-10-18

FINTRAC imposes an administrative monetary penalty on Cathay Pacific Realty Ltd

FINTRAC imposed a $206,250 administrative monetary penalty on Vancouver-based real estate broker Cathay Pacific Realty Ltd. for multiple violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The firm failed to submit required suspicious transaction reports, develop and apply compliance policies, assess money laundering and terrorist financing risks, maintain ongoing staff training, and conduct biennial program effectiveness reviews. This enforcement action underscores FINTRAC’s commitment to ensuring real estate sector compliance with Canada’s anti-money laundering regime to protect national economic security.

Canada

Financial Transactions and Reports Analysis Centre Canada

News Release

October 18, 2022 , Ottawa Ontario

FINTRAC announced today that it has imposed an administrative monetary penalty on Cathay Pacific Realty Ltd. This real estate broker in Vancouver, British Columbia was imposed an administrative monetary penalty of $206,250 on July 25, 2022 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

Cathay Pacific Realty Ltd. was found to have committed the following violations:

Failure to submit a suspicious transaction report where there were reasonable grounds to suspect that transactions were related to a money laundering offence;

Failure to develop compliance policies and procedures related to ministerial directives and ongoing monitoring of business relationships, and failure to apply policies and procedures related to third party determination;

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

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

Failure to institute and document a review, every two years, to assess the effectiveness of its policies and procedures, risk assessment and 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. At the same time, we will 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.

FINTRAC’s Administrative Monetary Penalties program is one of the most open and transparent of its kind, including in relation to penalty calculations.

FINTRAC has imposed more than 110 penalties across most business sectors since it received the legislative authority to do so in 2008.