Four financial cooperatives are being sanctioned by federal anti-money laundering (AML) authorities for alleged violations of AML rules that were uncovered in compliance reviews.
In a series of enforcement notices, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) detailed monetary penalties against two credit unions and two caisse populaires for alleged compliance failings.
The biggest penalty of $676,500 was levied against New Brunswick-based Caisse populaire acadienne ltée (UNI Financial Cooperation), which FINTRAC found committed three violations — including one “very serious” violation and two “serious” violations of the AML requirements.
The agency said the very serious violation involved failing to report financial transactions in four instances where the firm had “reasonable grounds” to suspect that the transactions involved possible money laundering or terrorist financing activity.
The other allegations involved failing to develop and apply written compliance policies and procedures, and failing to assess and document the money laundering risks.
Separately, FINTRAC also sanctioned Thunder Bay, Ont.-based Caisse populaire Alliance limitée (Caisse Alliance), imposing a penalty of $82,500 for a handful of alleged breaches, which were all classified as “serious.”
Oshawa, Ont.-based Pathwise Credit Union was hit with a $41,250 penalty for a pair of breaches, while Kitchener, Ont.-based Your Neighbourhood Credit Union Ltd. received a penalty of $16,500 for a single violation.
All of the co-ops have paid their penalties and their cases have been closed, FINTRAC said.