Canaccord paid $544,500 after FinTRAC cited failures in reporting and risk oversight compliance
Canaccord Genuity Inc. has paid a $544,500 penalty after Canada’s financial crime watchdog found the firm failed to report transactions that could be linked to money laundering or terrorist financing, according to the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC).
The Canadian Press reports that FinTRAC found the Vancouver-based investment dealer violated several provisions under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The agency said the firm failed to submit suspicious transaction reports despite having reasonable grounds to suspect criminal links.
The firm also failed to develop up-to-date, written compliance policies approved by a senior officer, assess and document the risk of a money laundering or terrorist financing offence, and apply special measures for high-risk situations.
FinTRAC stated the penalty was imposed on May 14 and that proceedings have concluded. Canaccord has already paid the fine.
In a statement, the firm said the issues were identified during a routine examination and have since been addressed.
However, according to The Canadian Press, Canaccord did not immediately respond to a request for further comment.
The enforcement action comes as the federal government intensifies its crackdown on financial crime ahead of a review of Canada’s anti-money-laundering regime by the Financial Action Task Force, an intergovernmental body that sets global standards to combat illicit finance.
Ottawa is preparing for this review by proposing stricter rules, including higher fines and restrictions on businesses that accept cash payments of $10,000 or more.
This case follows a pattern of increased scrutiny by FinTRAC.
The agency has imposed record-setting fines in recent years, including a $9.2m penalty against Toronto-Dominion Bank and a $7.475m fine against Royal Bank of Canada.
A $2.46m penalty was also levied last year against Exchange Bank of Canada, a Toronto-based institution specialising in foreign currency exchange and international payment services for corporate clients.
Canaccord also faced unrelated disciplinary action this May, when it agreed to pay more than $2.8m in penalties as part of a settlement with the Canadian Investment Regulatory Organization.
The firm surrendered $2.2m earned from trading activity and paid a $600,000 fine and $50,000 in costs, as per the decision by a CIRO hearing panel.
