Cash Shop #27 Fined $33,000 by FINTRAC for Failing to Submit Documents
| 2025-02-06
FINTRAC fines Mississauga-based Cash Shop #27 for not providing compliance documents during anti-money laundering examination. Penalty of $33,000 issued.
FINTRAC fines Mississauga-based Cash Shop #27 for not providing compliance documents during anti-money laundering examination. Penalty of $33,000 issued.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed an administrative monetary penalty of CAD 33,000 on 2147353 Ontario Inc., which operates as Cash Shop #27. The penalty was issued on 2 December 2024 for non-compliance with a regulatory requirement to provide documentation during a scheduled examination.
The Mississauga-based business, which offers foreign exchange services and electronic funds transfers, was notified in May 2024 that it would be subject to a compliance review. FINTRAC’s compliance examinations are part of Canada’s broader efforts to detect and deter money laundering and terrorist financing under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Failure to Provide Required Documentation
According to FINTRAC, Cash Shop #27 was informed on 7 May 2024 that it must submit documentation related to its compliance programme, including policies, risk assessments, transaction records, and unusual activity logs, by 7 June. This deadline was later extended to 14 June to allow the business more time to comply.
Despite this extension and follow-up attempts by FINTRAC, the business did not provide any of the requested information. The agency classified the failure to comply as a serious violation under subsection 63.1(2) of the Act.
The required documents would have allowed FINTRAC to evaluate the firm’s internal controls and adherence to Canada’s anti-money laundering regulations. Without such information, the agency is unable to carry out its mandated compliance functions effectively.
Regulatory Impact and Enforcement
A FINTRAC statement noted that “failing to provide required documentation interferes with FINTRAC’s ability to plan examinations and conduct oversight activities, which are essential to Canada’s ability to detect and deter illicit financial activity.”
The fine has since been paid in full, and the case has been formally closed, according to FINTRAC.
Context
Money services businesses, such as those involved in currency exchange or wire transfers, are considered higher-risk entities within Canada’s anti-money laundering regime. As a result, they are subject to strict regulatory requirements, including record-keeping, customer identification, and risk-based compliance reviews.
Under the law, entities must cooperate with FINTRAC during compliance examinations by providing access to documents and information upon request. Non-compliance with such requests may result in administrative penalties or further enforcement action.
The fine against Cash Shop #27 is part of a broader trend of increasing regulatory scrutiny on smaller financial entities in Canada. In recent years, FINTRAC has stepped up efforts to ensure businesses across sectors meet their obligations under national and international financial crime frameworks.
By enforcing compliance through administrative penalties, FINTRAC aims to strengthen the integrity of Canada’s financial system and meet its commitments under global anti-money laundering standards set by bodies such as the Financial Action Task Force.
The Mississauga-based business, which offers foreign exchange services and electronic funds transfers, was notified in May 2024 that it would be subject to a compliance review. FINTRAC’s compliance examinations are part of Canada’s broader efforts to detect and deter money laundering and terrorist financing under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Failure to Provide Required Documentation
According to FINTRAC, Cash Shop #27 was informed on 7 May 2024 that it must submit documentation related to its compliance programme, including policies, risk assessments, transaction records, and unusual activity logs, by 7 June. This deadline was later extended to 14 June to allow the business more time to comply.
Despite this extension and follow-up attempts by FINTRAC, the business did not provide any of the requested information. The agency classified the failure to comply as a serious violation under subsection 63.1(2) of the Act.
The required documents would have allowed FINTRAC to evaluate the firm’s internal controls and adherence to Canada’s anti-money laundering regulations. Without such information, the agency is unable to carry out its mandated compliance functions effectively.
Regulatory Impact and Enforcement
A FINTRAC statement noted that “failing to provide required documentation interferes with FINTRAC’s ability to plan examinations and conduct oversight activities, which are essential to Canada’s ability to detect and deter illicit financial activity.”
The fine has since been paid in full, and the case has been formally closed, according to FINTRAC.
Context
Money services businesses, such as those involved in currency exchange or wire transfers, are considered higher-risk entities within Canada’s anti-money laundering regime. As a result, they are subject to strict regulatory requirements, including record-keeping, customer identification, and risk-based compliance reviews.
Under the law, entities must cooperate with FINTRAC during compliance examinations by providing access to documents and information upon request. Non-compliance with such requests may result in administrative penalties or further enforcement action.
The fine against Cash Shop #27 is part of a broader trend of increasing regulatory scrutiny on smaller financial entities in Canada. In recent years, FINTRAC has stepped up efforts to ensure businesses across sectors meet their obligations under national and international financial crime frameworks.
By enforcing compliance through administrative penalties, FINTRAC aims to strengthen the integrity of Canada’s financial system and meet its commitments under global anti-money laundering standards set by bodies such as the Financial Action Task Force.
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