Two firms have been hit with penalties for alleged compliance violations from federal anti-money laundering authorities.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a monetary penalty of $224,235 on a Montreal-based money services business, Commerciale I.C. – Pacific Inc., after a compliance review uncovered five breaches of anti-money laundering rules.
The most significant breach — classified as a “very serious” violation by FINTRAC — involved dealings with customers in Iran that, the agency said, violated a federal ministerial directive.
Specifically, a FINTRAC compliance exam found 110 instances, between March and August 2022, where the firm failed to report electronic transfers with clients in Iran, as required — as a result, the firm violated the ministerial directive on Iran.
“Compliance policies and procedures that do not meet the measures set out in a ministerial directive can result in the failure to comply with priority areas intended to detect, prevent and deter specific threats to Canada’s financial system and the safety of Canadians,” FINTRAC said in a notice.
Three of the other alleged violations were classified as “serious” by the regulator — including inadequate risk assessment, deficiencies in its compliance policies and procedures, and failing to review its’ compliance policies — while the other breach was deemed “minor.”
Separately, FINTRAC also fined a Markham, Ont.-based firm, TreasureMeta Corp., for failing to update its registration information (a name change and head office change). It was fined $24,750 for that violation, which was uncovered in the agency’s supervisory activity.