April 05, 2016
The federal anti-money laundering agency has levied a $1.1-million penalty against an unnamed Canadian bank for failing to report a suspicious transaction and various money transfers.
It is the first time the Ottawa-based Financial Transactions and Reports Analysis Centre of Canada, known as Fintrac, has penalized a bank — and it’s being billed as a warning to thousands of other businesses.
Generally, the centre tracks cash flows linked to terrorism, money laundering and other crimes by sifting through millions of pieces of data annually from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.. In this case, Fintrac spokesman Darren Gibb said he cannot legally discuss details of the bank’s infractions, and the federal agency is exercising its discretion to withhold the identity of the financial institution, which recently paid the penalty of $1,154,670.
The fine was levied against the bank for failing to report:
- an attempted or actual suspicious transaction;
- receipt of $10,000 or more in a single transaction;
- an electronic funds transfer of $10,000 or more to a destination outside Canada;
- receipt from outside Canada of an electronic funds transfer of $10,000 or more.
In addition, the bank was penalized for failing to apply written compliance policies and procedures that are kept up to date and approved by a senior officer.