FINTRAC Fines Vancouver Money Services Firm Over AML Breach
| 2025-02-25
MSBG International Holdings Ltd. in Vancouver fined $24,750 by FINTRAC for serious anti-money laundering compliance failures.
MSBG International Holdings Ltd. in Vancouver fined $24,750 by FINTRAC for serious anti-money laundering compliance failures.
MSBG International Holdings Ltd., which operates under the name MTT Centre, received an administrative monetary penalty of CAD 24,750 from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) on 19 December 2024. The fine followed a compliance examination conducted earlier that year.
The company has since paid the penalty in full, and proceedings related to the case have concluded.
According to FINTRAC, the penalty was issued following the agency’s third compliance review of the Vancouver-based money services firm. The examination identified one serious violation related to the development and application of written compliance policies and procedures, which are mandated under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Compliance Failures
The agency found that MSBG International Holdings Ltd. failed to create or maintain complete and up-to-date written policies for managing financial transactions. Specifically, the company lacked documented procedures for submitting several key types of reports to FINTRAC, including suspicious transaction reports, large cash transaction reports, electronic funds transfers, and terrorist property reports.
Regulators emphasised that such written procedures are fundamental to ensuring employees and compliance personnel can consistently apply the required standards. These documents also ensure clarity in business operations and serve as a safeguard against legal breaches.
In the absence of properly documented processes, staff may be unaware of the required actions to take when encountering financial transactions that fall under regulatory scrutiny, according to FINTRAC’s findings.
Repeated Examination
The fine followed a history of scrutiny by FINTRAC. MSBG International Holdings Ltd. had been previously examined to assess its compliance with parts of Canada’s anti-money laundering legislation. The most recent audit in June 2023 marked the third such review of the firm’s operations.
FINTRAC stated that the penalty classification reflected the serious nature of the compliance failure and was assessed based on criteria outlined in section 73.11 of the Act and related penalty regulations.
Context
Money services businesses in Canada are legally obligated to comply with comprehensive anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. These requirements include establishing internal compliance programmes, maintaining detailed records, and reporting specific types of financial transactions to FINTRAC.
The purpose of such regulations is to detect and prevent the misuse of financial systems for criminal activity. Businesses found in breach may face administrative penalties, court actions, or licence suspension.
FINTRAC, an independent federal agency under the Ministry of Finance, is responsible for monitoring financial transactions, analysing threats related to money laundering and terrorist financing, and ensuring regulated entities follow the law.
The case of MSBG International Holdings Ltd. highlights ongoing regulatory efforts to uphold financial integrity within Canada’s money services sector. Though the company has paid its fine and the case is now closed, the incident serves as a reminder of the high compliance standards expected of businesses in the industry.
The company has since paid the penalty in full, and proceedings related to the case have concluded.
According to FINTRAC, the penalty was issued following the agency’s third compliance review of the Vancouver-based money services firm. The examination identified one serious violation related to the development and application of written compliance policies and procedures, which are mandated under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Compliance Failures
The agency found that MSBG International Holdings Ltd. failed to create or maintain complete and up-to-date written policies for managing financial transactions. Specifically, the company lacked documented procedures for submitting several key types of reports to FINTRAC, including suspicious transaction reports, large cash transaction reports, electronic funds transfers, and terrorist property reports.
Regulators emphasised that such written procedures are fundamental to ensuring employees and compliance personnel can consistently apply the required standards. These documents also ensure clarity in business operations and serve as a safeguard against legal breaches.
In the absence of properly documented processes, staff may be unaware of the required actions to take when encountering financial transactions that fall under regulatory scrutiny, according to FINTRAC’s findings.
Repeated Examination
The fine followed a history of scrutiny by FINTRAC. MSBG International Holdings Ltd. had been previously examined to assess its compliance with parts of Canada’s anti-money laundering legislation. The most recent audit in June 2023 marked the third such review of the firm’s operations.
FINTRAC stated that the penalty classification reflected the serious nature of the compliance failure and was assessed based on criteria outlined in section 73.11 of the Act and related penalty regulations.
Context
Money services businesses in Canada are legally obligated to comply with comprehensive anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. These requirements include establishing internal compliance programmes, maintaining detailed records, and reporting specific types of financial transactions to FINTRAC.
The purpose of such regulations is to detect and prevent the misuse of financial systems for criminal activity. Businesses found in breach may face administrative penalties, court actions, or licence suspension.
FINTRAC, an independent federal agency under the Ministry of Finance, is responsible for monitoring financial transactions, analysing threats related to money laundering and terrorist financing, and ensuring regulated entities follow the law.
The case of MSBG International Holdings Ltd. highlights ongoing regulatory efforts to uphold financial integrity within Canada’s money services sector. Though the company has paid its fine and the case is now closed, the incident serves as a reminder of the high compliance standards expected of businesses in the industry.
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