The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada’s anti-money laundering agency, announced an administrative monetary penalty against Argosy Securities of Richmond Hill, Ontario. The penalty, assessed on September 12, 2024, was for C$66,000.

Argosy was found to have violated part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which covers recordkeeping, identity verification, and the reporting of suspicious transactions.

In a press release, FINTRAC stated that Argosy failed to:

• develop and apply written, up-to-date AML policies;
• assess and document money laundering or terrorist financing risk; and
• implement and document the required review of its policies, procedures, risk assessment, and training program.

Further information about what noncompliant behavior led to Argosy’s penalty is publicly unavailable, as is typical of FINTRAC enforcement actions.

However, Sarah Paquet, Director and CEO was quoted as saying that Canada’s AML and anti-terrorist financing regime “is in place to protect the safety of Canadians and the security of Canada’s economy” and that FINTRAC is “firm in ensuring that businesses continue to do their part” and “will take appropriate actions when they are needed.”

In 2023-4, FINTRAC significantly increased its enforcement efforts regarding AML violations, imposing a record total of C$26,115,999.50 in penalties across 12 entities.

The majority of this total stemmed from a penalty levied against Canada-headquartered TD Bank for its extensive disregard of AML policies. The penalty value, though impressive, paled in comparison to the nearly $3.1B issued against the bank by several US agencies.

FINTRAC has also recently implemented a new Digital Strategy, which is intended to advance automation, analytics and AI in order to bolster the agency’s technical capabilities.