FINTRAC has levied fines of $66,742.50 on Park Georgia Realty in Vancouver and $31,350 on Re/Max All-Stars Realty in Unionville, Ont. for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.
Both brokerages have appealed the decisions to the Federal Court.
In a statement, FINTRAC says Park Georgia Realty was found to have committed the following violations:
- Failure to develop compliance policies and procedures that sufficiently covered the requirements;
- Failure to assess and document the money laundering or terrorist activity financing risks of its geographic locations, products and delivery channels, and clients and business relationships;
- Failure to include the frequency and how training would be maintained on an ongoing basis in its training program;
- Failure to establish and document the prescribed review of its compliance policies and procedures, risk assessment and training program; and
- Failure to keep prescribed information in client information and receipt of funds records.
The violations were found during the course of a compliance examination in 2018, says FINTRAC.
Re/Max All-Stars Realty was fined for failure to provide, in accordance with a notice, most of the requested compliance program documentation for purposes of a compliance examination, FINTRAC says. The violations were found during the course of a compliance examination in 2019.
“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,” says Sarah Paquet, director and CEO of the Financial Transactions and Reports Analysis Centre of Canada in the statement.
“FINTRAC is committed to working with businesses to help them understand and comply with their obligations under the Act. At the same time, we will be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
FINTRAC says its Administrative Monetary Penalties program is “one of the most open and transparent of its kind, including in relation to penalty calculations.
“With the changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in 2019, FINTRAC is required to make public the name of all persons and entities that receive an administrative monetary penalty,” it says.
