FINTRAC imposes an administrative monetary penalty on Diamond Exchange Toronto Inc., in Toronto, Ontario
April 5, 2016 – Ottawa, ON – Financial Transactions and Reports Analysis Centre of Canada
Diamond Exchange Toronto Inc., a dealer in precious metals and stones in Toronto, Ontario, was imposed an administrative monetary penalty of $12,750 on March 9, 2016, for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR).
Diamond Exchange Toronto Inc. was found to have the following deficiencies:
- Failure to develop and apply written compliance policies and procedures;
- Failure to assess and document the risks related to money laundering and terrorist financing; and
- Failure to develop and maintain a written, ongoing compliance training program.
- A number of business sectors in Canada are required, under the PCMLTFA, to keep certain records, identify clients, maintain a compliance regime, and report certain financial transactions to FINTRAC.
- Sectors covered under the legislation include accountants, British Columbia notaries, casinos, dealers in precious metals and stones, financial entities, life insurance, money services businesses, real estate, and securities dealers.
- Administrative monetary penalties are issued to encourage change in the non-compliant behaviour of reporting entities.
“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.”
Director, Financial Transactions and Reports Analysis Centre of Canada
Financial Transactions and Reports Analysis Centre of Canada
FINTRAC is an arm’s length agency governed by the PCMLTFA that reports to Parliament through the Minister of Finance. The Centre produces financial intelligence that helps law enforcement and national security agencies in fighting money laundering, terrorist activity financing and threats to the security of Canada. FINTRAC’s financial intelligence assists hundreds of criminal investigations every year, including those where the alleged laundered proceeds are linked to drug offences, fraud, tax evasion, corruption and human smuggling and trafficking.
A fundamental aspect of FINTRAC’s mandate is the deterrence and detection of money laundering and terrorist financing. To do so, FINTRAC ensures that businesses subject to the PCMLTFA across the country meet their obligations and generate the financial transaction reports that serve as the foundation for FINTRAC’s analysis and intelligence.
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