FINTRAC Fines Exchange Bank of Canada $2.45M for Violating AML/CFT Regulations

On December 11, 2024, the Financial Transactions & Reports Analysis Centre of Canada (FINTRAC) imposed a monetary penalty of $2.45 Million on the Exchange Bank of Canada for violating AML/CFT regulations.

This penalty is followed by a compliance examination from December 2022 to April 2024. The investigation also revealed that the Exchange Bank of Canada, which is headquartered in Toronto, Ontario didn’t comply with provisions of Part 1 of the Proceeds of Crime, specifically the money laundering & terrorism financing act. 

Read Also

• Vietnamese Tycoon “Truong My Lan” Faces Death Sentenced For $12 Billion Fraud Scandal
• UAE Establishes General Secretariat To Strengthen National Anti-Money Laundering Efforts
• UK and Cyprus Strengthen Alliance To Combat Russian Illicit Finance

The Exchange Bank of Canada committed several administrative violations associated with AML/CFT regulations, including: 

• The bank didn’t monitor ongoing business relationships with its customers, which is an essential step in recognizing & mitigating risks. 
• The bank didn’t file STRs in certain situations where there were reasonable grounds to suspect that financial transactions were linked to terrorist financing and money laundering activities. 
• The bank didn’t report the receipt of cash exceeding $10,000 in a single financial transaction from any entity or individual, as required by regulations. 

Since 2008, FINTRAC has had the legislative authority to issue administrative monetary fines to businesses and reporting entities that don’t comply with the Proceeds of Crime, including money laundering & terrorist financing. 

According to a Press Release, the FINTRAC should make public the name of the entity or person that is involved in the violation, the amount of applicable penalty, and the violation nature, as per its section 73.22.