A Vancouver currency exchange and money transfer business has been fined nearly $25,000 for violating Canada’s anti-money-laundering and terrorism financing laws.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the “administrative monetary penalty” against MSBG International Holdings Ltd. – which operates as MTT Centre – on its website Tuesday.
The penalty of $24,750 was imposed on Dec. 19, 2024, and has since been paid in full, ending proceedings against the company, FINTRAC said.
According to the federal agency, the penalty stems from a violation it encountered during a “compliance examination” of MSBG in 2023.
The company had “incomplete” policies and procedures that “did not outline the process or steps involved in submitting financial transactions to FINTRAC,” the agency said on its website.
“Policies and procedures are critical in a compliance program as they set out and communicate important principles and standards that employees and delegated persons with compliance responsibilities must meet in a consistent manner,” FINTRAC said.
“Documented policies and procedures also serve to ensure clarity and consistency in business operations. Failing to develop, apply, and keep written compliance policies and procedures up to date can result in not meeting other requirements set out in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations, and undervalues sound business practices designed to minimize a business’ exposure to money laundering and terrorist activity financing."
The agency said the violation is classified as “serious.”
FINTRAC said its administrative monetary penalties are intended to “encourage change in the non-compliant behaviour of businesses.”
In 2023-24, the agency said, it issued 12 notices of violation to businesses, totalling more than $26 million.
