Argosy Securities Inc. has been sanctioned by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), after federal anti-money laundering agency uncovered compliance violations at the securities dealer.
FINTRAC announced that, following a compliance exam that revealed certain violations of federal anti-money laundering requirements, it imposed a $66,000 monetary penalty on the Richmond Hill, Ont.-based firm.
Specifically, the agency found administrative violations with Argosy’s written compliance policies and procedures; the firm’s reviews of those procedures; and its approach to assessing and documenting money laundering risks.
“FINTRAC’s examination determined that Argosy Securities Inc. did not sufficiently develop and document its compliance policies and procedures in relation to know your client requirements and record keeping,” the agency said in a notice outlining the enforcement action.
It also said that the firm “had insufficient ongoing monitoring measures for its business relationships;” that these requirements were not always applied; and that suspicious transaction reporting timeframes weren’t accurately documented.
And, the agency found that the firm’s risk-based assessments didn’t clearly outline the risks associated with its clients and business relationships; document an adequate methodology for assessing its money laundering and terrorist financing risks; or account for the risks associated with its specific business model.
Finally, the compliance exam also found that Argosy’s required review of its policies and procedures, didn’t cover the risk assessment process, and didn’t specify how its compliance program was tested, and how any deficiencies were addressed.
The agency said that the penalty, which was ordered back in September 2024, was paid in full by the firm, and that the enforcement proceedings have ended.
“FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed,” said Sarah Paquet, director and CEO of FINTRAC, in a release.