FINTRAC imposes an administrative monetary penalty on Xeltox Enterprises Ltd — FINTRAC — CA

News release

October 22, 2025 — Ottawa

FINTRAC announced today that it has imposed an administrative monetary penalty on Xeltox Enterprises Ltd. (operating as Cryptomus and previously known as Certa Payments Ltd.). Following a compliance examination, this money services business, incorporated in British Columbia under the name Xeltox Enterprises Ltd., was imposed an administrative monetary penalty of $176,960,190 on October 16, 2025, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

Cryptomus was found to have committed the following administrative violations:

Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering or terrorist activity financing offence that occurred on 1,068 separate occasions during the period of July 1, 2024 – July 31, 2024.

Failure to comply with a Ministerial Directive.

Failure to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer.

Failure to assess and document the risk of a money laundering offence or a terrorist activity financing offence in the course of its activities, taking into consideration the prescribed factors.

Failure to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information.

Failure to report the receipt from a client of an amount in virtual currency of $10,000 or more in the course of a single transaction, together with the prescribed information that occurred on 1,518 separate occasions during the period of July 1, 2024 – July 31, 2024.

FINTRAC found that Cryptomus failed to submit suspicious transaction reports for transactions where there were reasonable grounds to suspect that they were related to the laundering of proceeds connected to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion.

As Canada’s virtual currency sector continues to expand rapidly, so too do the risks associated with money laundering, terrorist financing and sanctions evasion. FINTRAC is reinforcing the importance of robust compliance frameworks to protect Canadians and safeguard the integrity of Canada’s financial system. The vulnerabilities in the virtual currency sector significantly impair transparency and accountability and make the sector as a whole susceptible to exploitation by illicit actors if proper anti-money laundering and anti-terrorist financing compliance controls are not put in place.

Quote

“We are committed to working with our domestic partners and international allies to protect the safety of Canadians and the security of Canada’s economy. Given that numerous violations in this case were connected to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion, FINTRAC was compelled to take this unprecedented enforcement action.”

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 encourage change in the non-compliant behaviour of businesses.

In 2024–25, FINTRAC issued 23 Notices of Violation of non-compliance to businesses, the largest number in one year in the Centre’s history, for a total of more than $25 million.

FINTRAC has imposed more than 150 penalties across most business sectors since it received the legislative authority to do so in 2008.

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