The Financial Transactions and Reports Analysis Centre (FINTRAC) of Canada has levied an administrative penalty of CA$206,910 ($171,458) on Magasin Château D’Ivoire Inc., a precious metals and stones dealer in Montréal, Quebec. The reason for FINTRAC’s action is the dealer’s non-compliance with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations.
Magasin Château D’Ivoire Inc. failed to develop compliance policies and procedures related to record-keeping and ongoing monitoring of business relationships. It also failed to implement procedures for reporting terrorist property. Moreover, it failed to file reports for cash transactions of $10,000 or more. For several transactions where there were reasons to suspect ML, the dealer failed to file a suspicious transaction report.
Magasin Château D’Ivoire Inc. also lacked a written compliance training program. Further, the dealer failed to perform and document an ML/TF risk assessment for its geographic locations, delivery channels and clients. For these reasons, FINTRAC made its decision to impose financial penalty on the dealer.
Source: Financial Transactions and Reports Analysis Centre of Canada