The Financial Transactions and Reports Analysis Centre of Canada has fined two money services business for failing to register with the Centre, FINTRAC said Wednesday.

Toronto-based 1630035 Ontario Ltd., also operating as AM Exchange and AM Currency Exchange, was fined $3,940.

Montreal-based Lesbia Isabel Herrera, also operating as Envimaya, was fined $3,560.

A number of business sectors in Canada are required to keep certain records, identify clients, maintain compliance regimes, and submit reports to FINTRAC consistent with their obligations under the Proceeds of Crime Money Laundering and Terrorist Financing Act.

These sectors include banking, life insurance, trusts, securities, real estate credit unions, casinos and money services businesses. Money services businesses also have the obligation to register their business with FINTRAC.

“Penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted,” FINTRAC said in a release.

This is the first time that FINTRAC has used this authority to assess such penalties.

FINTRAC is an independent federal government agency with a mandate to assist in the detection, deterrence and prevention of money laundering and the financing of terrorist activities.

IE