Richmond, B.C., currency exchange fined $315K by federal anti-money-laundering agency
A currency exchange in Richmond, B.C., has been fined more than $315,000 for six violations of Canada's anti-money-laundering and terrorism financing rules, the federal regulator that enforces those rules announced Thursday.
The Financial Transactions and Reports Analysis Centre of Canada, better known as FINTRAC, published details on its website of the administrative monetary penalties it imposed on Canada Changjiang Management Ltd.
The penalties stemmed from a compliance examination FINTRAC conducted in 2022. The violations the examination found occurred between December 2020 and May 2021, according to FINTRAC.
The regulator said the fines – totalling $315,282 – were imposed in February of this year, and Changjiang has paid them in full. Proceedings related to the company's non-compliance are now complete.
According to FINTRAC, the six violations Changjiang committed were:
- 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;
- Failure to submit large cash transactions reports of $10,000 or more in the course of a single transaction, together with prescribed information;
- Failure to submit outgoing electronic funds transfer reports of $10,000 or more in the course of a single transaction, together with prescribed information;
- 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;
- And failure to assess and document the risk of a money laundering or terrorist financing offence.
The regulator noted that the company failed to submit two suspicious transaction reports in cases where there were reasonable grounds to suspect the transactions were related to money laundering or terrorism financing.
Specifically, those transactions involved instances in which clients conducted transactions at different physical locations, appeared to be structuring amounts to avoid client identification or reporting thresholds, and conducted transactions with jurisdictions known to be at a higher risk for money laundering or terrorism financing.
FINTRAC also found that, although Changjiang had policies in place requiring reporting of suspicious transactions, those policies either did not comply with the regulations or were not followed.
"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 a news release announcing the penalties against Changjiang.
"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.”
Changjiang's website describes the company multiple times as being "registered with FINTRAC," and describes identification requirements and other security procedures it requires for large transactions.
The regulator's news release describes its administrative monetary penalties as intended to be "non-punitive" and "issued to encourage change in the non-compliant behaviour of businesses."
CTVNews.ca Top Stories
NEW Who should lead the Liberals? 'None of the above,' poll finds
As questions loom over Prime Minister Justin Trudeau’s leadership, a new Nanos Research poll commissioned for CTV News says a quarter of Canadians say none of the potential candidates appeal to them.
Canada's response to Trump deportation plan a key focus of revived cabinet committee
U.S. president-elect Donald Trump's promise to launch a mass deportation of millions of undocumented people has the Canadian government looking at its own border.
Canada rent report: What landlords are asking tenants to pay
Average asking rents declined nationally on a year-over-year basis for the first time in more than three years in October, said a report out Thursday.
U.S. election maps: How did 2024 compare to 2020 and 2016?
Though two states have yet to be officially called, the U.S. election map has mostly been settled. How does it compare with the previous two elections?
N.S. school 'deeply sorry' for asking service members not to wear uniforms at Remembrance Day ceremony
An elementary school in the Halifax area has backed away from a request that service members not wear uniforms to the school's Remembrance Day ceremony.
Remembrance Day: What's open and closed in Canada?
While banks and post offices will be closed nationwide on Remembrance Day, shops and businesses could be open depending on where you live in Canada.
BREAKING Judicial recount for Surrey-Guildford confirms B.C. NDP's majority
The B.C. New Democrats have a majority government of 47 seats after a judicial recount in the riding of Surrey-Guildford gave the party's candidate 22 more votes than the provincial Conservatives.
48,584 space heaters recalled in Canada after burn injury in U.S.
Health Canada has announced a recall for electric space heaters over potential fire and burn risks, a notice published Thursday reads.
Israeli soccer fans were attacked in Amsterdam. The violence was condemned as antisemitic
Israeli fans were assaulted after a soccer game in Amsterdam by hordes of young people apparently riled up by calls on social media to target Jewish people, Dutch authorities said Friday. Five people were treated at hospitals and dozens were arrested after the attacks, which were condemned as antisemitic by authorities in Amsterdam, Israel and across Europe.