FINTRAC fines bank for compliance violations

Federal anti-money laundering agency, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), sanctioned Exchange Bank of Canada for violating federal rules.

FINTRAC announced that it imposed a $2.5 million administrative monetary penalty on the Toronto-based bank that deals primarily in foreign exchange, for breaches of the federal anti-money laundering requirements.

The agency reported that a compliance examination carried out between December 2022 and April 2024 revealed violations of suspicious transaction reporting requirements, and a failure to conduct ongoing monitoring of business relationships at the bank.

“FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed,” said Sarah Paquet, director and CEO of FINTRAC, in a release.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.