SaskatchewanThe Financial Transactions and Reports Analysis Centre of Canada says the bank violated federal financial reporting regulations by failing to report suspicious transactions and poor oversight.Sask.-based bank says policies, procedures improved since compliance investigationJeremy Warren · CBC News · Posted: Oct 16, 2025 5:04 PM EDT | Last Updated: 3 hours agoThe First Nations Bank of Canada has been fined $601,139.80 for five violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (Google Maps)The First Nations Bank of Canada says it accepts the results of an investigation by Ottawa’s financial intelligence agency, which fined the Saskatoon-based bank just over $600,000 for violating money laundering and terrorist financing reporting rules.On Sept. 22, the Financial Transactions and Reports Analysis Centre of Canada imposed an administrative monetary penalty on the bank for failure to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.In total, the First Nations Bank of Canada was fined $601,139.80 for five violations of the act’s regulations, according to a Fintrac news release. The violations are related to oversight of suspicious transactions, assessments of high-risk clients and reporting requirements.“First Nations Bank of Canada failed to submit suspicious transaction reports in 31 per cent of the case files reviewed by Fintrac, where there were reasonable grounds to suspect that one or more transactions were related to the commission or attempted commission of a money laundering or terrorist activity financing offence,” according to Fintrac’s violation summary. The agency said its investigation revealed gaps in the bank’s policies and procedures for monitoring and reporting suspicious transactions and high-risk clients.In a statement emailed to CBC News, the First Nations Bank of Canada said it has paid the fine and accepts Fintrac’s recommendations for improving internal policies and procedures.The statement said the investigation looked at transactions made from Jan. 1, 2023, to Dec. 31, 2023, and since then, the bank has brought in compliance experts, reworked internal monitoring and hired a new chief compliance and anti-money laundering officer.“The [First Nations Bank of Canada] takes all regulatory feedback seriously and is committed to the highest compliance standard,” said the statement.To comply with Canada’s Proceeds of Crime and Terrorist Financing Act, businesses such as casinos, financial institutions and real estate brokers are required to keep records, identify clients and report suspicious financial transactions to Fintrac.The agency uses this information to help law enforcement and security agencies with investigations into money laundering, terrorist financing and threats to Canada’s security.“We consider an administrative monetary penalty to be effective when the penalty amount is proportional to the harm done and prompts a change in behaviour toward future compliance,” according to Fintrac’s website.The five administrative violations found at First Nations Bank of Canada were:Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to the commission or attempted commission of a money laundering or a terrorist activity financing offence.Failure to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer.Failure to assess and document the risk of a money laundering or terrorist financing offence.Failure of a person or entity to take prescribed special measures.Failure to conduct ongoing monitoring of business relationships.Earlier this year, Fintrac fined the Saskatchewan Indian Gaming Authority $1,175,000 for violations under the act, including failure to report suspicious transactions and inadequate monitoring policies. SIGA is appealing the fine.The SIGA’s fine and the bank’s fine are not related, the bank said.ABOUT THE AUTHORJeremy Warren is a reporter in Saskatoon. You can reach him at jeremy.warren@cbc.ca.
Fintrac issues $600K fine to First Nations Bank of Canada
