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FINTRAC enforcement action: Taiwanese Canadian Toronto Credit Union Limited

FINTRAC imposes an administrative monetary penalty on Taiwanese Canadian Toronto Credit Union Limited

From the Financial Transactions and Reports Analysis Centre

News Release

March 15, 2022, Ottawa ON

FINTRAC announced today that it has imposed an administrative monetary penalty on Taiwanese Canadian Toronto Credit Union Limited. This credit union in Markham, Ontario, was imposed an administrative monetary penalty of $297,000 on November 1, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

Taiwanese Canadian Toronto Credit Union Limited was found to have committed the following violations:

  • Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering or a terrorist financing offence;
  • Failure to develop compliance policies and procedures that sufficiently covered the requirements for verifying client identity, beneficial ownership, domestic politically exposed persons and heads of international organizations, and ongoing monitoring of business relationships;
  • Failure to fully assess and document the money laundering or terrorist activity financing risk of its products and delivery channels, as well as its clients and business relationships; and
  • Failure to institute and document a review, every two years, to assess the completeness and effectiveness of its policies and procedures, and the effectiveness of its risk assessment.

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 Enforcement Notice

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

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