FINTRAC issues administrative monetary penalties against two entities

Ottawa, August 19, 2009 – The Financial Transactions and Reports Analysis Centre of Canada has assessed administrative monetary penalties against two entities. The penalties were imposed for violations of the Proceeds of Crime Money Laundering and Terrorist Financing Act

(PCMLTFA).

1. 1630035 Ontario Ltd., also operating as AM Exchange and AM Currency Exchange, engaged in a money services business at 6113 Yonge Street in North York, Ontario, was issued a penalty of $3,940 on 29 June 2009, for committing one violation:
   
   Failure of a prescribed person or entity to be registered with the Centre, in accordance with section 11.1 of the Proceeds of Crime Money Laundering and Terrorist Financing Act.

2. Lesbia Isabel Herrera, also operating as Envimaya, engaged in a money services business at 206-7121 St-Hubert in Montreal, Quebec, was issued a penalty of $3,560 on 29 June 2009, for committing one violation:
   
   Failure of a prescribed person or entity to be registered with the Centre, in accordance with section 11.1 of the Proceeds of Crime Money Laundering and Terrorist Financing Act.

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 PCMLTFA. 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.

FINTRAC has had the authority to issue administrative monetary penalties in response to non-compliance with the PCMLTFA and related regulations since December 30, 2008. Penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted. This is the first time that FINTRAC has used this authority to assess such penalties.

Administrative monetary penalties serve as an adjunct to existing criminal penalties. Both criminal and civil penalties cannot be issued against the same instances of non-compliance. Violations are classified as "Minor", "Serious" or "Very Serious", and carry maximum penalties of $1,000, $100,000 and $500,000 respectively.

FINTRAC remains committed to working with reporting entities in ensuring compliance with the PCMLTFA and related regulations. The new penalties are a tool to encourage compliance.

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. FINTRAC analyzes financial transaction reports and discloses financial intelligence to law enforcement and CSIS where it has reasonable grounds to suspect that the information would assist in the investigation of money laundering and terrorist activity financing offences or threats to the security of Canada.

FINTRAC is part of Canada’s Anti-Money Laundering and Anti-Terrorist Activity Financing Initiative. The initiative is led by the Department of Finance and includes the RCMP, CSIS, Public Safety Canada, Canada Revenue Agency, Canada Border Services Agency, the Communications Security Establishment and the Department of Justice.