OTTAWA, September 30, 2013 – The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed administrative monetary penalties against seven Canadian businesses for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (the Regulations). The following businesses received a penalty over the past 10 months:
- Becksley Capital Inc., also operating as Capital Becksley Inc., a securities dealer in Toronto, Ontario, was imposed an administrative monetary penalty of $25,900 on November 28, 2012, for committing five violations.
- RE/MAX Active Realty Inc., a real estate broker in Mississauga, Ontario, was imposed an administrative monetary penalty of $6,770 on March 12, 2013, for committing four violations.
- 1671474 Ontario Ltd., operating as Hai Van Money Transfer Ltd. and Cong Ty Hai Van, a money services business in Woodbridge, Ontario, was imposed an administrative monetary penalty of $35,060 on March 18, 2013, for committing nine violations.
- Kinbok Enterprises Inc., also operating as Kinbok Enterprises Ltd., a money services business in Richmond, British Columbia, was imposed an administrative monetary penalty of $5,560 on March 25, 2013, for committing four violations.
- Northern Securities Inc., operating as Northern Securities and NSI, a securities dealer in Toronto, Ontario, was imposed an administrative monetary penalty of $164,640 on June 4, 2013, for committing five violations.
- MJS World Financial Services Inc., a money services business in Scarborough, Ontario, was imposed an administrative monetary penalty of $21,370 on June 13, 2013, for committing eight violations.
- M. K. Exchange Inc., also operating as M. K. Exchange, a money services business in Richmond Hill, Ontario, was imposed an administrative monetary penalty of $12,880 on July 11, 2013, for committing nine violations.
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 are used to ensure compliance with the law and serve as a counterpart to existing criminal 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 analysis 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
