The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has assessed its first fine against a real estate brokerage. HomeLife Effect Realty in Hamilton was fined $27,000 for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
FINTRAC says the brokerage was fined for committing four violations:
– Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program;
– Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer;
– Failure of a person or entity to assess and document risk; and
– Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons.
FINTRAC has had the authority to issue administrative monetary penalties in response to non-compliance with the act and related regulations since December 30, 2008. It says penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted.
“FINTRAC remains committed to working with reporting entities in ensuring compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations,” says the agency in a news release. “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.
ARTICLE SOURCE: http://www.remonline.com/home/?p=4971