Federal regulators yesterday fined a Toronto-based bank $676,500 for breach of regulations under the Proceeds Of Crime And Terrorist Financing Act. According to Blacklock's Reporter, the penalty for Wealth One Bank of Canada was the steepest levied in two years..“We will be firm in ensuring businesses continue to do their part,” Sarah Paquet, CEO of the Financial Transactions and Reports Analysis Centre, said in a statement. “We will take appropriate actions when they are needed.”.Wealth One Bank was cited for three paperwork violations and a fourth “very serious” infraction. “Wealth One Bank failed to submit suspicious transaction reports where there were reasonable grounds to suspect transactions were related to a money laundering offence,” the Centre said..The fines were imposed February 15 but only disclosed yesterday after they were paid in full. “These administrative deficiencies are not related to money laundering or terrorist financing and were found during the course of a compliance examination in 2022,” wrote staff..The Wealth One fine was the largest since the Canadian subsidiary of the Industrial and Commercial Bank of China was ordered to pay $701,250 in penalties in 2021. The Chinese bank was similarly cited for multiple breaches of the Act including “failure to submit suspicious transaction reports where there were reasonable grounds to suspect transactions were related to a money laundering or terrorist financing offence.”.Under the Act all banks must report all cash transactions of $10,000 or any lesser transaction considered suspicious. The Laurentian Bank last April 29 was fined $486,750. The largest penalty to date was $1.15 million against Manulife Bank of Canada in 2016..The Reports Analysis Centre in a February 18 legal notice proposed to bill all banks for the cost of enforcing the Act. The Centre has 468 employees and a $78.8 million annual budget. Expenses should be recovered through a yearly toll on banks, insurers, casinos, realtors and other businesses required to report suspicious cash transactions, said a Regulatory Impact Analysis Statement..“Legislation once in force will require the director of the Analysis Centre to determine by December 31 of each year the costs incurred in the preceding fiscal year with respect to the administration of the Act,” wrote staff..“Once this amount is determined the Analysis Centre would calculate the assessment amounts payable by reporting entities on the basis of the annual asset value in Canada of federally regulated banks, trust and loan companies and life insurance companies and the volume of threshold transaction reports, large currency transaction reports, electronic funds transfer reports and casino disbursement reports submitted by all reporting entities.”
Federal regulators yesterday fined a Toronto-based bank $676,500 for breach of regulations under the Proceeds Of Crime And Terrorist Financing Act. According to Blacklock's Reporter, the penalty for Wealth One Bank of Canada was the steepest levied in two years..“We will be firm in ensuring businesses continue to do their part,” Sarah Paquet, CEO of the Financial Transactions and Reports Analysis Centre, said in a statement. “We will take appropriate actions when they are needed.”.Wealth One Bank was cited for three paperwork violations and a fourth “very serious” infraction. “Wealth One Bank failed to submit suspicious transaction reports where there were reasonable grounds to suspect transactions were related to a money laundering offence,” the Centre said..The fines were imposed February 15 but only disclosed yesterday after they were paid in full. “These administrative deficiencies are not related to money laundering or terrorist financing and were found during the course of a compliance examination in 2022,” wrote staff..The Wealth One fine was the largest since the Canadian subsidiary of the Industrial and Commercial Bank of China was ordered to pay $701,250 in penalties in 2021. The Chinese bank was similarly cited for multiple breaches of the Act including “failure to submit suspicious transaction reports where there were reasonable grounds to suspect transactions were related to a money laundering or terrorist financing offence.”.Under the Act all banks must report all cash transactions of $10,000 or any lesser transaction considered suspicious. The Laurentian Bank last April 29 was fined $486,750. The largest penalty to date was $1.15 million against Manulife Bank of Canada in 2016..The Reports Analysis Centre in a February 18 legal notice proposed to bill all banks for the cost of enforcing the Act. The Centre has 468 employees and a $78.8 million annual budget. Expenses should be recovered through a yearly toll on banks, insurers, casinos, realtors and other businesses required to report suspicious cash transactions, said a Regulatory Impact Analysis Statement..“Legislation once in force will require the director of the Analysis Centre to determine by December 31 of each year the costs incurred in the preceding fiscal year with respect to the administration of the Act,” wrote staff..“Once this amount is determined the Analysis Centre would calculate the assessment amounts payable by reporting entities on the basis of the annual asset value in Canada of federally regulated banks, trust and loan companies and life insurance companies and the volume of threshold transaction reports, large currency transaction reports, electronic funds transfer reports and casino disbursement reports submitted by all reporting entities.”
