Latest news with #FINTRAC
CTV News
4 days ago
- Business
- CTV News
FINTRAC fines B.C. currency exchange nearly $350K for non-compliance with money laundering rules
Federal anti-money-laundering investigators have imposed a hefty fine on a currency exchange business based in Burnaby, B.C. The Financial Transactions and Reports Analysis Centre of Canada, better known as FINTRAC, announced the $348,067.50 administrative monetary penalty against Crystal Currency Exchange Inc. on Thursday. The penalty, which was imposed on March 5, stems from nine instances of non-compliance with Part 1 of the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations, according to FINTRAC. The currency exchange has launched an appeal of the penalties in Federal Court. According to FINTRAC, Crystal Currency Exchange's violations included: 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 report large cash transactions of $10,000 or more in cash in a single transaction; 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 appoint a compliance officer; Failure to develop and apply written compliance policies and procedures that are kept up to date; Failure to assess and document the risk of a money laundering or terrorist financing offence; Failure to develop and maintain a training program; and Failure to institute and document the prescribed review. A more detailed summary of the non-compliance is listed on the FINTRAC website. It indicates that investigators found three instances of unreported suspicious transactions, each involving a client about whom Crystal Currency Exchange had previously submitted a suspicious transaction report. The regulator's summary also notes that it had informed the business of 'deficiencies in its compliance program' during previous examinations in 2015 and 2017. Despite this, 'FINTRAC did not observe any improvement in Crystal Currency Exchange Inc.'s compliance program' when investigators returned in 2022. '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 news release announcing the penalties. 'FINTRAC works with businesses to help them understand and comply with their obligations under the act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.'
Yahoo
15-05-2025
- Business
- Yahoo
Canadian Banks and Regulators to Meet in Toronto Amid Shifting Economic and Regulatory Landscape
TORONTO, May 15, 2025 /CNW/ - Senior executives from Canada's major banks and financial institutions will join government regulators in Toronto next month to address fast-moving regulatory and economic changes at the 24th Annual Canadian Forum on Anti-Money Laundering and Financial Crime, hosted by the Canadian Institute. Taking place June 25–26, 2025, at the One King West Hotel, the forum comes at a pivotal moment for the financial sector. Escalating U.S. tariffs and changes to the U.S. Corporate Transparency Act are intensifying cross-border compliance challenges for Canadian institutions. In a March 2025 statement, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) confirmed that foreign entities qualifying as "reporting companies" must submit Beneficial Ownership Information (BOI) under newly mandated deadlines. Canadian institutions will need to respond quickly to comply with evolving standards. "There's a lot changing," said Karen Creen, conference co-chair and Chief Compliance Officer & Chief AML Officer at First Nations Bank of Canada. "We've moved into Gen 2 reporting with FINTRAC. We have the FATF mutual evaluation coming. There's the new reporting of sanctioned property that's going to FINTRAC. There's a lot of moving pieces, as always in AML." Notable speakers at the forum include: Tina Matos, Chief Compliance Officer and Deputy Director of Supervision, FINTRAC Gabriel Ngo, Director, Independent Review Office, Bank of Canada Key Topics Include: Lessons from U.S. regulatory actions against Canadian banks Economic and compliance fallout from the U.S. election Real estate and crypto sector exposure FATF evaluation preparation and cross-border BOI reporting More information and registration details are available at: SOURCE The Canadian Institute View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
15-05-2025
- Business
- Cision Canada
Canadian Banks and Regulators to Meet in Toronto Amid Shifting Economic and Regulatory Landscape
TORONTO, May 15, 2025 /CNW/ - Senior executives from Canada's major banks and financial institutions will join government regulators in Toronto next month to address fast-moving regulatory and economic changes at the 24th Annual Canadian Forum on Anti-Money Laundering and Financial Crime, hosted by the Canadian Institute. Taking place June 25–26, 2025, at the One King West Hotel, the forum comes at a pivotal moment for the financial sector. Escalating U.S. tariffs and changes to the U.S. Corporate Transparency Act are intensifying cross-border compliance challenges for Canadian institutions. In a March 2025 statement, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) confirmed that foreign entities qualifying as "reporting companies" must submit Beneficial Ownership Information (BOI) under newly mandated deadlines. Canadian institutions will need to respond quickly to comply with evolving standards. "There's a lot changing," said Karen Creen, conference co-chair and Chief Compliance Officer & Chief AML Officer at First Nations Bank of Canada. "We've moved into Gen 2 reporting with FINTRAC. We have the FATF mutual evaluation coming. There's the new reporting of sanctioned property that's going to FINTRAC. There's a lot of moving pieces, as always in AML." Notable speakers at the forum include: Key Topics Include:
Cision Canada
14-05-2025
- Business
- Cision Canada
CIRO Launches Thought Leadership Webinar Series to Address Evolving Financial Landscape Français
TORONTO, May 14, 2025 /CNW/ - The Canadian Investment Regulatory Organization (CIRO) is excited to announce the launch of its new webinar series featuring in-depth conversations with leaders, disruptors, and innovators shaping the future of finance in Canada. Designed to inform, inspire, and engage, the series will explore industry advancements that enhance investor protection, market integrity, and regulatory efficiency. Each episode will offer expert insights into pressing challenges and emerging trends in the financial sector. The inaugural episode features Andrew Kriegler, CIRO CEO, in conversation with Sarah Paquet, CEO of FINTRAC, Canada's financial intelligence unit and anti-money laundering regulator. Their discussion will examine how FINTRAC is evolving to address new risks in an increasingly digital and data-driven world, and how collaboration between CIRO and FINTRAC helps build a more transparent and resilient financial landscape. "As financial markets evolve, proactive leadership and collaboration are essential," said Andrew Kriegler, CIRO CEO. "This webinar series provides a platform to share knowledge, drive innovation, and empower investors with the confidence to navigate the future of finance." Key topics in the first episode include: The rise of digital assets and the regulatory challenges surrounding cryptocurrencies, blockchain platforms and decentralized finance overall. How CIRO and FINTRAC work together to enhance oversight while reducing regulatory burden. FINTRAC's strategic initiatives to tackle emerging financial threats and modernize its approach. The role of generative AI and evolving technologies in shaping financial intelligence and regulation. This webinar marks the beginning of an ongoing series designed to keep industry professionals, regulators, and investors informed on critical developments in finance. For more details on CIRO's Thought Leadership webinar series and upcoming episodes, visit About CIRO: The Canadian Investment Regulatory Organization (CIRO) is dedicated to ensuring the integrity, fairness, and transparency of Canada's investment industry. Through proactive regulation and education, CIRO fosters trust and confidence in the financial markets, protecting investors and supporting the industry's growth. SOURCE Canadian Investment Regulatory Organization (CIRO)
CBC
06-02-2025
- Business
- CBC
Want to get rid of fentanyl? Tackle money-laundering first, say experts
As the federal government says it will introduce new measures to fight organized crime in Canada, helping it stave off tariff threats from the U.S., experts say that Canada's money-laundering problem has festered for far too long — and that the issue makes it easier for fentanyl-pushing cartels to gain a foothold in this country. U.S. President Donald Trump has used the fentanyl crisis to justify broad tariffs against Canada, alleging that a massive amount of the drug is entering the U.S. via Canada. Canada makes up just 0.2 per cent of all U.S. border fentanyl seizures, but the country has shifted in recent years from being a consumer and importer of fentanyl to a producer and exporter, according to a January report by financial watchdog FINTRAC. The roughly 100 organized crime groups operating in Canada (including three groups dedicated to supplying fentanyl) are partly drawn to loopholes and lax penalties that allow fentanyl-related money-laundering operations to flourish, according to researchers. "The discussion about fentanyl is closely tied in to money-laundering in two ways," says Christian Leuprecht, a professor at the Royal Military College and Queen's University and author of Dirty Money: Financial Crime in Canada. The profits from fentanyl produced in Canada for the Canadian market are often laundered inside the country through banks, real estate, casinos and other fronts. But these operations are typically connected to a wider network of precursor suppliers and other crime groups based outside of the country, leading to an extensive transnational money-laundering operation associated with the fentanyl produced in Canada. "As a result of the overproduction of fentanyl [in Canada], some of this spills over into the United States," said Leuprecht. He added that organized crime groups choose Canada because it puts them inside of what was, at least before the threat of tariffs, a free-trade zone. "That is not by accident. That is by design because it reduces your risk. It reduces your detection," he said. WATCH | How much fentanyl really gets into the U.S. from Canada?: How much fentanyl is really going to the U.S. from Canada 3 days ago Duration 2:14 Canadian banks in particular are popular because they operate retail branches both in Canada and the U.S., making it easier for criminals to bank on both sides of the U.S.-Canada border using one institution and thereby reducing their chances of detection, according to Leuprecht. A recent crisis at TD Bank, for example, saw the financial institution admitting that its lax anti-money laundering regime allowed fentanyl traffickers to launder $670 million through its American branches. While the U.S. Department of Justice fined the Canadian bank $3 billion US for its role in that scheme, Canadian fines are comparatively smaller — FINTRAC fined TD just $9 million Cdn a few months earlier for violating anti-money laundering compliance rules. As part of the deal between Canada and the U.S., Prime Minister Justin Trudeau said that Canada would appoint a fentanyl czar, list drug cartels as terrorists, beef up border surveillance and launch a joint strike force to counter organized crime, fentanyl and money laundering. Disrupting a crime group's money-laundering operation would be more debilitating than targeting individual fentanyl operations, said Leuprecht. "The way criminals are moving drugs, producing drugs, how they're laundering their money and the colossal amounts of money involved, it's just not been a priority for the government," he said. That could be changing: the RCMP busted the largest drug "superlab" in Canadian history this past fall, with the federal government later floating a proposal in the fall economic statement that it would boost the AML oversight penalty to at least $20 million per violation and increase fines for criminal offences. It also announced in its 2024 budget that it would amend some legislation in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. 'Snow-washing' is pervasive, says compliance expert Michael Ecclestone, a compliance leader at the AML Shop in Toronto, advises businesses that are obligated to comply with Canada's anti-money laundering regulations. Noting that there's a particular name for money-laundering in Canada — "snow-washing" — he says the problem is pervasive. "There's almost no limit to how this can be done," Ecclestone said, noting that money can be laundered through smaller businesses like jewelers, gold dealers or securities dealers. Professional money launderers use various tactics to clean money, like fraudulent invoicing and trade arrangements, or moving money back and forth between bank accounts or shell corporations without real assets. When businesses fail to report suspicious activity, the problem festers — and that's why some groups have called for harsher penalties for non-compliance with AML laws. In Canada, "one area constantly called out for a lack of resources and a lack of focus is the amount of prosecution," said Ecclestone. He said it's been a long time since there was a concerted effort to update anti money-laundering legislation and to arm police and investigators with adequate resources to tackle the problem. The focus on fentanyl could provide "a shot in the arm and a jolt to authorities to begin that process of updating, enhancing, making the regime more able to deal with the current levels of money-laundering we're seeing in Canada," he added. "No one trades in fentanyl if they don't think they're going to make money from it."
