Fintrac imposes more than $600K penalty on First Nations Bank of Canada

Canada’s anti-money laundering agency has imposed a penalty of more than $600,000 on First Nations Bank of Canada for violations under the country’s anti-money laundering laws. Fintrac (Financial Transactions and Reports Analysis Centre of Canada) imposed an administrative penalty of $601,139.80 on Sept. 22 for five violations found during a compliance examination. The regulator says the bank failed to submit suspicious transaction reports in 31 per cent of the case files it reviewed where there were reasonable grounds to suspect transactions were related to money laundering or terrorist activity financing. It also said the bank did not develop and apply written compliance policies and procedures. In addition, it says the bank failed to assess and document the risk of money laundering or terrorist financing and failed to take prescribed special measures with high-risk clients. Fintrac also says FNBC failed to conduct ongoing monitoring of business relationships. FNBC chief marketing officer Jed Johns says the bank has taken meaningful steps to improve its compliance, including hiring external compliance experts, restructuring internal oversight and hiring a chief compliance officer. Johns says the bank has also strengthened its internal policies, procedures, and training to reflect its commitment to meeting and exceeding regulatory standards. Continue Reading