Canadian regulator fines RBC $5.5m for “administrative violations” of its AML rules
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a $5.5 million (CAD 7.5 million) penalty on the Royal Bank of Canada (RBC), citing “administrative violations” of its anti-money laundering (AML) and counter-terrorist financing rules.
Canadian regulator FINTRAC fines RBC for administrative AML violations
According to the regulator, a compliance examination was conducted on Canada’s largest bank last year, during which it says it uncovered three administrative violations by RBC, including failure to submit reports of suspicious transactions; failure to provide information in the reports in the “prescribed form and manner”; and failure to keep written policies and procedures up to date.
FINTRAC emphasises that the penalty was imposed “for administrative violations committed by RBC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations, and not for criminal offences for money laundering or terrorist activity financing”.
RBC has stated it will not appeal FINTRAC’s charges.
In a statement to CBC News, the bank says: “We chose not to appeal but believe the fine is not at all commensurate with an administrative matter where there is no connection to money laundering or terrorist financing offences.
“Equally important, there is no finding that anyone exercised judgment in bad faith or knowingly contributed to violations.”
Sarah Paquet, director and CEO of FINTRAC, adds: “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy.
“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.”
