Region

Jurisdiction

Regulator

2021-05-19

FINTRAC imposes an administrative monetary penalty on Magasin Château D'Ivoire Inc.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a $206,910 administrative monetary penalty on Magasin Château D'Ivoire Inc. for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The Montréal-based precious metals dealer failed to implement required compliance policies, conduct money laundering risk assessments, establish a written training program, and submit mandatory large cash and suspicious transaction reports. This enforcement action underscores FINTRAC's commitment to enforcing anti-money laundering obligations across regulated sectors and ensures public transparency regarding entities that breach Canada's financial security framework.

Canada

Financial Transactions and Reports Analysis Centre Canada

From:

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

News release

May 19, 2021 , Ottawa ON

FINTRAC announced today that it has imposed an administrative monetary penalty on Magasin Château D'Ivoire Inc., also operating as Château D'Ivoire. This dealer in precious metals and stones in Montréal, Quebec, was imposed an administrative monetary penalty of $206,910 on March 1, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

Magasin Château D'Ivoire Inc. was found to have committed the following violations:

Failure to develop compliance policies and procedures that covered the requirements relating to record-keeping and ongoing monitoring of business relationships, as well as procedures relating to the reporting of terrorist property;

Failure to assess and document the money laundering or terrorist activity financing (ML/TF) risk of its geographic locations, products and delivery channels, and clients and business relationships;

Failure to develop a written compliance training program that covered training on its policies and procedures, the frequency and timing of the training, and how it would be maintained on an ongoing basis;

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

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

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."

Sarah Paquet, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada

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, dealers in precious metals and stones, 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.

With the changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in 2019, FINTRAC is required to make public the name of all persons and entities that receive an administrative monetary penalty.