Region

Jurisdiction

Regulator

2024-11-28

FINTRAC imposes an administrative monetary penalty on Simple Canadian Services

FINTRAC has imposed a $229,350 administrative monetary penalty on Surrey-based money services business Simple Canadian Services for failing to meet mandatory anti-money laundering reporting, risk assessment, and compliance policy requirements. The sanction stems from a 2022 compliance examination that uncovered five specific violations, including neglecting to submit incoming electronic funds transfer reports of $10,000 or more, develop updated compliance procedures, and treat foreign jurisdiction transactions as high-risk. Issued under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the non-punitive penalty aims to enforce regulatory adherence and safeguard Canada’s financial system from illicit activities.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

November 28, 2024 — Ottawa — Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on 1121920 B.C. Ltd, also operating as Simple Canadian Services. Following a compliance examination in 2022, this money services business in Surrey, British Columbia, was imposed an administrative monetary penalty of $229,350 on August 14, 2024, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

Simple Canadian Services was found to have committed the following administrative violations:

Failure to submit incoming electronic funds transfer reports of $10,000 or more in the course of a single transaction, together with prescribed information;

Failure to develop and apply written compliance policies and procedures that are kept up to date;

Failure to assess and document the risk of a money laundering or terrorist financing offence;

Failure to institute and document the prescribed review; and

Failure to treat all transactions from a foreign jurisdiction as high-risk in accordance with ministerial directives.

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.