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FINTRAC nabs yet another real estate firm for AML failures

FINTRAC imposes an administrative monetary penalty on Pacific Place – Arc Realty Ltd.

FINTRAC announced today that it has imposed an administrative monetary penalty on Pacific Place – Arc Realty Ltd. This real estate broker in Vancouver, British Columbia, was imposed an administrative monetary penalty of $255,750 on July 27, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

Pacific Place – Arc Realty Ltd. was found to have committed the following violations:

  • Failure to ensure that the appointed person was responsible for implementing a compliance program;
  • Failure to develop compliance policies and procedures that fully covered the requirements for verifying client identity, determining third parties, record-keeping of business relationships and receipt of funds, and conducting ongoing monitoring of business relationships;
  • Failure to fully assess and document the money laundering or terrorist activity financing risk of its geographic locations, products and delivery channels, clients and business relationships, and other relevant factors affecting its business;
  • Failure to fully document an ongoing compliance training program, and to deliver it in practice to all of its staff and salespersons;
  • Failure to institute and document a review, every two years, to assess the effectiveness of its policies and procedures, risk assessment and training program; and
  • Failure to submit a suspicious transaction report where there were reasonable grounds to suspect that transactions were related to a money laundering offence.

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 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.

Link:

FINTRAC Notice

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

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