Canada’s monetary intelligence company mentioned it imposed a $7.4-million penalty in opposition to the Royal Financial institution of Canada for non-compliance with anti-money laundering and terrorist financing measures.
The Monetary Transactions and Stories Evaluation Centre of Canada says the violations embody failing to submit suspicious transaction stories the place there have been affordable grounds to suspect ties to a cash laundering offence.
RBC did not submit 16 suspicious transaction stories out of 130 case recordsdata reviewed, the company mentioned.
The company, generally known as Fintrac, mentioned the executive penalty was imposed on Nov. 3 following a compliance examination in 2022.
“We selected to not enchantment however consider the advantageous is in no way commensurate with an administrative matter the place there isn’t any connection to cash laundering or terrorist financing offences,” RBC advised CBC Information in an announcement.
“Equally vital, there isn’t any discovering that anybody exercised judgment in dangerous religion or knowingly contributed to violations.”
RBC’s penalty was imposed underneath the Proceeds of Crime (Cash Laundering) and Terrorist Financing Act, and never for felony offences for cash laundering or terrorist exercise financing.
Company upping anti-money laundering vigilance
Fintrac tries to pinpoint cash linked to illicit actions by electronically sifting thousands and thousands of items of data every year from banks, insurance coverage firms, cash companies companies and others.
It then discloses intelligence to police and different law-enforcement companies concerning the suspected instances.
Fintrac director Sarah Paquet mentioned in a current speech that the company’s precedence is to work with companies to assist them adjust to their reporting obligations.
However she clearly flagged that some had been falling behind and that Fintrac would take applicable motion when wanted.
Lately, the company has elevated anti-money laundering vigilance.
“What we’re seeing is, Fintrac is taking a special method and so they have up to now … I do not suppose there are going to be any extra free passes,” mentioned Garry Clement, monetary crime prevention professional and CEO of Clement Advisory Group.
The penalty, a rarity amongst Canadian banks, comes after Toronto Dominion, the nation’s second largest financial institution, this yr mentioned it was being investigated by the U.S. Justice Division for anti-money laundering compliance south of the border.
