A Toronto-based exempt market dealer, Primary Capital Inc., has been sanctioned by federal anti-money laundering authorities for alleged compliance violations.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed an administrative monetary penalty of $93,390 on the firm, after a compliance exam uncovered four violations of the anti-money laundering regulations — including three violations that it classified as serious and one minor issue.
Specifically, the agency found that the firm didn’t “sufficiently develop and document its compliance policies and procedures”, including its know your client (KYC) requirements, its ongoing monitoring of business relationships, and setting timelines for submitting suspicious transaction reports.
It also found that the firm failed to properly document a risk assessment, and didn’t consider all of the required factors when making a risk assessment. In addition, FINTRAC found the firm failed to review its compliance program in order to “test the effectiveness of its policies and procedures, risk assessment and training program.”
FINTRAC said that the penalty has been paid, and the case is closed.