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2024-07-11

FINTRAC imposes an administrative monetary penalty on Metna General Trading Inc

FINTRAC imposed a $252,285 administrative monetary penalty on Metna General Trading Inc., a Thornhill money services business, for multiple violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The compliance examination revealed failures to establish updated compliance policies, assess money laundering and terrorist financing risks, maintain required transaction records, and adhere to ministerial directives and registration change notifications. Issued to encourage corrective action rather than as punishment, the penalty underscores FINTRAC’s enforcement of Canada’s anti-money laundering regime and its expectation that regulated entities fully implement compliance programs and reporting obligations.

Canada

Financial Transactions and Reports Analysis Centre Canada

News release

July 11, 2024—Ottawa— Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on Metna General Trading Inc., formerly known as Metna Financial Investment Inc. Following a compliance examination in 2021, this money services business in Thornhill, Ontario, was imposed an administrative monetary penalty of $252,285 on November 7, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

Metna General Trading Inc. was found to have committed the following administrative violations:

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 comply with a ministerial directive;

Failure to keep prescribed records in respect of foreign currency exchange tickets;

Failure to keep prescribed records of remitting and transmitting $1,000 or more;

Failure to have entered into a written agreement or arrangement with an agent or mandatary; and

Failure to submit notification of change to money services business registration.

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 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.