RE/MAX Kelowna fined $150K by federal money-laundering regulator

A view of the bridge over Okanagan Lake between West Kelowna and Kelowna, B.C., is shown. (Shutterstock.com)

A Kelowna real estate broker has been fined more than $150,000 for failing to comply with federal anti-money-laundering rules.

The Financial Transactions and Reports Analysis Centre of Canada, better known as FINTRAC, imposed the penalty on Norwich Real Estate Services Inc. in late August, but didn't post a public notification about it until Friday.

The company, which also operates as RE/MAX Kelowna, failed to submit a suspicious transaction report "where there were reasonable grounds to suspect that transactions were related to a money laundering offence," according to FINTRAC.

That's a violation of the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations, FINTRAC said in a statement, adding that it had imposed an administrative monetary penalty of $156,750 on the broker.

The company has appealed FINTRAC's decision to federal court, according to the regulator's website.

FINTRAC's administrative penalties are explicitly intended to encourage compliance and to be "non-punitive," according to the agency's statement.

The agency says it typically only issues such penalties after other efforts to achieve compliance have failed.

"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," said Sarah Paquet, FINTRAC's director and CEO, in the statement.

"FINTRAC is committed to working 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."