The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced on Tuesday that it imposed a $28,500 administrative monetary penalty on Toronto-based exempt market dealer (EMD) Becksley Capital Inc. back on Dec. 9, 2015, for violating anti-money laundering rules.
According to FINTRAC, Becksley was found to have several deficiencies, including: an inadequate compliance training program; failing to “take reasonable measures when opening an account to determine if it will be used by or on behalf of a third party”; and failing to institute and document a required two year review.
Separately, FINTRAC also announced administrative penalties against a couple of precious metals dealers.
The agency noted that certain sectors, including securities dealers, are required to keep certain records, identify clients, maintain a compliance regime, and report certain financial transactions to FINTRAC. It uses administrative penalties to “encourage change” in firms that aren’t fully compliant with the rules.
“Canada’s anti-money laundering and anti-terrorist financing regime is dependent on the dedicated efforts of Canada’s businesses on the front lines of the legitimate economy. Our compliance efforts are meant to ensure they fulfill their legal obligations and send us the information that we need to produce actionable financial intelligence for our law enforcement and national security partners,” said Gérald Cossette, director of FINTRAC, in a statement.