MP Technology Services fined CAD 536,853 for Canada AML breaches

The Financial Transactions and Reports Analysis Centre of Canada, known as FINTRAC, said the penalty followed a compliance examination that identified multiple breaches of federal law. The enforcement action was finalised on 20 November 2025 and made public in mid-December.

MP Technology Services Ltd is registered in the Seychelles and operates in Canada as a money services business. According to FINTRAC, the company failed to meet key obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, legislation designed to protect the financial system from criminal abuse.

Regulators said the most serious failures related to reporting requirements. MP Technology Services did not submit reports for international electronic funds transfers exceeding the CAD 10,000 threshold. These reports are legally required and are used by authorities to trace large movements of money and detect potential laundering or terrorist financing.

FINTRAC said the absence of these reports created gaps in its ability to monitor cross-border financial flows. “These obligations are fundamental to safeguarding the integrity of Canada’s financial system,” the agency said in its notice of violation.

The examination also found that the company failed to submit suspicious transaction reports, even when internal systems had flagged transactions as high risk. Investigators said there were reasonable grounds to suspect that some of the activity could be linked to criminal conduct.

In a statement cited by Canadian media, FINTRAC described these failures as “very serious”, noting that suspicious transaction reporting is a cornerstone of the national intelligence framework used by law enforcement and security agencies.

Another area of concern was the absence of an adequate compliance programme. Regulators said MP Technology Services lacked up-to-date written policies and procedures approved by senior management. Canadian law requires money services businesses to maintain documented controls that are regularly reviewed and formally endorsed by a responsible officer.

FINTRAC said the company also failed to carry out and document a proper risk assessment. Such assessments must consider factors including customer profiles, geographic exposure and the nature of products offered. Without this analysis, firms are unable to focus enhanced monitoring on higher-risk activities.

The regulator noted that some transactions involved exposure to darknet marketplaces, online platforms commonly associated with illegal trade in drugs, weapons and stolen data. Other transactions showed links to sanctioned entities, which are prohibited from accessing the financial system due to involvement in terrorism or other serious crimes.

Particularly serious were findings related to transactions connected to child sexual abuse material. FINTRAC said the company had identified red flags but did not report the information to authorities. Regulators stressed that financial reporting plays a critical role in identifying and disrupting networks involved in online exploitation.

The agency said the CAD 536,853.35 penalty reflected four separate violations uncovered during the examination. While one breach related to a single unreported high-value transaction, others involved systemic weaknesses in governance, training and reporting.

MP Technology Services has not publicly commented in detail on the findings. There was no indication from regulators that criminal charges were being pursued, as administrative monetary penalties are civil measures intended to promote compliance.

Context Canada brought cryptocurrency dealers and digital asset platforms under formal federal regulation in 2019. Under amendments passed by Parliament, these firms are subject to the same reporting and oversight requirements as banks, casinos, real estate brokers and currency exchangers.

At the time, the federal government warned that virtual currencies posed heightened risks due to their speed, cross-border reach and potential anonymity. Former Canadian finance minister Bill Morneau told a Senate committee in 2018 that stronger controls were needed to prevent crypto-assets from being used to launder criminal proceeds.

The fine against MP Technology Services comes during what FINTRAC has described as a record year for enforcement. The agency has issued more than 20 notices of violation in the current fiscal year, with total penalties exceeding CAD 25 million.

Regulators say the case sends a clear message to international firms operating in Canada. Providing services to Canadian residents carries full responsibility to comply with domestic laws, regardless of where a company is incorporated.

FINTRAC said enforcement will continue to intensify as financial crime grows more complex, particularly in the digital finance sector. Firms that fail to invest in risk management, staff training and reporting systems are likely to face further sanctions.