Mr. Watchlist notes: 4 of 6 FINTRAC Enforcement Actions in 2021 involved real estate companies, and at least 4 of the 13 this year do (based purely on seeing the name Realty or similar in the name – there might be more).
FINTRAC imposes an administrative monetary penalty on Cathay Pacific Realty Ltd.
October 18, 2022, Ottawa Ontario
FINTRAC announced today that it has imposed an administrative monetary penalty on Cathay Pacific Realty Ltd. This real estate broker in Vancouver, British Columbia was imposed an administrative monetary penalty of $206,250 on July 25, 2022 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.
Cathay Pacific Realty Ltd. 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 develop compliance policies and procedures related to ministerial directives and ongoing monitoring of business relationships, and failure to apply policies and procedures related to third party determination;
- 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 develop and maintain a written ongoing compliance training program; and
- Failure to institute and document a review, every two years, to assess the effectiveness of its policies and procedures, risk assessment and training program.
“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 Real Estate
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