For the second time this week, federal anti-money laundering authorities are taking aim at a real estate brokerage firm in Ontario.
On Thursday, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced that it has hit a Windsor, Ont.-based broker, Manor Windsor Realty Ltd., with an administrative penalty for alleged compliance violations.
FINTRAC imposed a $107,250 penalty on the firm, after uncovering four alleged violations of the anti-money laundering (AML) rules in a compliance review. All four violations were classified as “serious” by the agency.
According to its enforcement notice, FINTRAC found that the firm’s compliance policies and procedures didn’t fully address its regulatory requirements when it comes to identifying clients, record keeping, and reporting; that the firm’s compliance training was inadequate; and that it didn’t review its compliance program as required.
FINTRAC also found that the firm’s risk assessment efforts were incomplete, as it failed to consider certain required factors including its products and delivery channels, the locations of its activities, as well as the clients and business relationships involved.
The firm has appealed the regulator’s penalty decision to the Federal Court, it noted.
Earlier this week, FINTRAC sanctioned another Ontario-based real estate broker for an alleged violation of the AML rules. That decision is also being appealed.