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Also a little dated: FINTRAC penalizes C&Z Holdings

FINTRAC imposes an administrative monetary penalty on C&Z Holdings Ltd.

FINTRAC announced today that it has imposed an administrative monetary penalty on C&Z Holdings Ltd. operating as Golden Apple. This money services business in Vancouver, British Columbia, was imposed an administrative monetary penalty of $101,969 on December 29, 2020, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

C&Z Holdings Ltd. was found to have committed the following violations:

  • Failure to submit Large Cash Transaction Reports for the receipt of $10,000 or more in cash;
  • Failure to include in outgoing Electronic Funds Transfer Reports information in the prescribed form and manner;
  • Failure to develop and apply written compliance policies and procedures related to reporting financial transactions, ongoing monitoring of business relationships and politically exposed persons and heads of an international organization;
  • 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 maintain an ongoing training program;
  • Failure to institute and document the prescribed review of its compliance policies and procedures, risk assessment and training program;
  • Failure to keep prescribed information where an amount of $1,000 or more is remitted or transmitted;
  • Failure to keep a record of the purpose and intended nature of business relationships; and
  • Failure to notify FINTRAC of a change to a money services business registration information.

Quote

“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. 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.”

Sarah Paquet, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada

Quick Facts

  • As Canada’s financial intelligence unit and anti-money laundering and anti-terrorist financing regulator, FINTRAC ensures that businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act comply with their obligations under the Act and its Regulations. The Centre also analyzes information and discloses financial intelligence to police, law enforcement and national security agencies to assist their investigations of money laundering, terrorist activity financing and threats to the security of Canada.
  • Casinos, financial entities, money services businesses, real estate brokers and sales representatives and several other business sectors are required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to keep certain records, identify clients, maintain a compliance regime and report certain financial transactions to FINTRAC.
  • FINTRAC’s revised Administrative Monetary Penalties policy is one of the most open and transparent penalty programs 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. 

Link:

FINTRAC Notice

Categories: Anti-Money Laundering Civil Monetary Penalties Enforcement Actions FINTRAC Updates

eric9to5

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