OTTAWA, September 30, 2013 – FINTRAC announced today at a money laundering conference in Vancouver, new criteria for the public naming of entities that receive administrative monetary penalties for non-compliance with Canada’s Proceed of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
A number of business sectors in Canada are required to keep certain records, identify clients, maintain a compliance regime, and report financial transactions to FINTRAC consistent with their obligations under the PCMLTFA. Sectors covered under the legislation include accountants, British Columbia notaries, casinos, dealers in precious metals and stones, financial entities, life insurance, money services businesses, real estate, and securities dealers.
Administrative monetary penalties were introduced in December 2008 to encourage compliance with the law on the part of reporting entities. Serving as an additional tool to criminal sanctions, these civil penalties allow for a measured and proportionate response to particular instances of non-compliance.
Since the beginning of the administrative monetary penalty program, FINTRAC has published the details of the penalties that it has imposed on reporting entities in order to promote awareness, demonstrate transparency, and encourage a change in compliance behavior.
The Centre recently revised the criteria for public notice. As of June 26, 2013, a person or entity subject to an administrative monetary penalty will be publicly named, once all proceedings have ended, if one of the following criteria is met:
- The person or entity has committed a very serious violation; or
- The base penalty amount is equal to or greater than $250,000, before adjustments are made in consideration of the person or entity’s compliance history and ability to pay; or
- Repeat significant non-compliance on the part of the person or entity.
“Canada’s anti-money laundering and anti-terrorist financing regime is about protecting Canadians and the integrity of Canada’s financial system,” said FINTRAC Director Gérald Cossette. He added, “We will be fair in imposing penalties and naming businesses, as we have been in the past; however, when we have to, FINTRAC will also be firm and public with our penalties.”
FINTRAC is an independent agency governed by the PCMLTFA and reports to Parliament through the Minister of Finance. The Centre produces financial intelligence that helps law enforcement and national security agencies in fighting money laundering, terrorist activity financing and threats to the security of Canada. FINTRAC’s financial intelligence assists hundreds of criminal investigations every year, including those where the alleged laundered proceeds were linked to drug offences, fraud, tax evasion, customs and excise offences, corruption and human smuggling and trafficking. The Centre’s intelligence also informs police and national security agencies of current and emerging trends and techniques used to launder money and raise funds for terrorist activities to help them stay ahead of criminals.
A critical aspect of FINTRAC’s mandate includes ensuring compliance with the PCMLTFA by businesses across the country with legal obligations under the Act. Ensuring these entities comply with their legal obligations helps to deter money laundering and terrorist activity financing. It also generates the financial transaction reports that serve as the foundation for FINTRAC’s analyses and intelligence.
FINTRAC is part of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. The initiative is led by the Department of Finance. Federal partners include the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, Canada Border Services Agency, Canada Revenue Agency, the Royal Canadian Mounted Police, Canadian Security Intelligence Service, Public Safety Canada, the Office of the Superintendent of Financial Institutions, and the Department of Foreign Affairs, Trade and Development Canada.
Additional information about FINTRAC’s administrative monetary penalties program can be found at:
http://www.fintrac-canafe.gc.ca/pen/2-eng.asp
