Laurentian Bank has just been fined for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Updated yesterday at 2:52 p.m.
More specifically, the Montreal financial institution is accused of not having submitted a report of suspicious transactions for which the authorities have “reasonable” grounds to suspect that they were linked to the laundering of the proceeds of crime.
The fine of nearly half a million dollars is imposed by Canada’s financial intelligence unit, i.e. the Financial Transactions and Reports Analysis Center of Canada (FINTRAC).
The mandate of this organization is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of the personal information it holds.
This is the first time a fine has been imposed on a major Canadian bank since the 2019 amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act which requires FINTRAC to make public the name of any person or entity that receives an administrative monetary penalty.
“The administrative penalty concerns an audit covering a period that ended in 2019 and concerns a small number of financial transactions,” said Laurentian spokesperson Merick Séguin.
Since then, the Bank has taken significant steps to strengthen its anti-money laundering and anti-terrorist financing program.
Merick Séguin, Laurentian Bank spokesperson
He specifies that the bank has notably made investments in its anti-money laundering program in order to acquire new technologies, recruit new talents with expertise in the field, improve training and strengthen continuous monitoring. money laundering risks.
FINTRAC’s findings do not reflect the systems, processes and standards that are in place today, he says.
“Our bank takes its compliance obligations very seriously, including those relating to the prevention of money laundering and terrorist financing and sanctions. We work closely with all regulators, including FINTRAC, to comply with applicable regulations. This collaboration is part of our ongoing commitment to our customers. »
File closed
Said violation was observed during a compliance review carried out two years ago and covering the period from January 2018 to March 2019.
“Canada’s anti-money laundering and anti-terrorist financing regime was established to keep Canadians safe and to protect Canada’s economy,” said Sarah Paquet, Director and President – FINTRAC Director General, in an official communication.
“FINTRAC is committed to working with businesses to help them understand and meet their obligations under the Law. On the other hand, it is with firmness that we will ensure that companies continue to do their part and that we will take the appropriate measures if necessary,” she adds.
The fine was imposed on February 17, but FINTRAC did not reveal it until Friday. Laurentian has already paid the penalty in full and FINTRAC maintains that the file is closed.
FINTRAC has imposed administrative monetary penalties on 23 financial entities (including another Canadian bank) since the Center received legislative authority to do so in 2008. In 2016, FINTRAC imposed a $1.15 million fine on Manulife Bank.