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A Surrey-based ‘money services company’ is appealing against a fine of approximately $230,000 imposed by Canada’s anti-money laundering and terrorist financing regulator.
The Financial Transactions and Reports Analysis Center of Canada, better known as FINTRAC, announced the administrative fine to 1121920 BC Ltd., in a press release late last month.
The numbered company does business as “Simple Canadian Services,” according to FINTRAC, which says the fine stems from a compliance investigation it conducted in 2022.
FINTRAC attempted to impose the $229,350 fine after finding five violations of the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and associated regulations.
The company has appealed the fine in federal court, FINTRAC said.
The five violations identified by FINTRAC, as detailed in the release, were:
Specifically, investigators found that between December 10, 2020 and May 7, 2021, Simple Canadian Services failed to file 21 “inbound wire transfer reports” in which they “electronically received instructions from outside Canada for transactions totaling $10,000 or more by or on behalf of the same person or entity.”
“FINTRAC determined that Simple Canadian Services did not consistently follow their respective policies and procedures regarding reporting of wire transfers,” FINTRAC reports this on its website.
The agency also noted that the company’s key customers “have connections to or are located in Iran,” but that Simple Canadian Services had not assessed “the specific geographic risks” associated with its operations.
According to FINTRAC, the company has failed to comply with a ministerial directive that requires companies to report all transactions originating in Iran, regardless of the amount of money involved.
“Administrative monetary penalties are intended to be non-punitive and are issued to encourage change in companies’ non-compliant behavior,” FINTRAC said in its press release.
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