Editor’s Note: Love the alliteration!
FINTRAC imposes an administrative monetary penalty on Pan Pacific Platinum Real Estate Services Inc.
October 6, 2022, Ottawa Ontario
FINTRAC announced today that it has imposed an administrative monetary penalty on Pan Pacific Platinum Real Estate Services Inc., also operating as LeHomes Realty. This real estate brokerage in Vancouver, British Columbia was imposed an administrative monetary penalty of $282,397.50 on March 28, 2022 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
Pan Pacific Platinum Real Estate Services Inc. was found to have committed the following violations:
- Failure to submit a suspicious transaction report where there were reasonable grounds to suspect that transactions were related to a money laundering offence;
- Failure to ensure that the appointed person was responsible for implementing a compliance program;
- Failure to develop and apply sufficient compliance policies and procedures for its regulatory obligations relating to third party determination, receipt of funds records and business relationships and ongoing monitoring;
- Failure to take into consideration the money laundering or terrorist activity financing risk of its products and delivery channels, its geographic location or its clients and business relationships;
- Failure to develop and maintain a written ongoing training program for its staff;
- Failure to institute and document a review to test the effectiveness of its policies and procedures, its risk assessment and its training program; and
- Failure to keep complete client identification records.
“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
- 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.
- FINTRAC has imposed more than 110 penalties across most business sectors since it received the legislative authority to do so in 2008.
Categories: Anti-Money Laundering Civil Monetary Penalties Enforcement Actions FINTRAC Updates
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