Canada's financial intelligence agency, the Financial Transactions and Reports Analysis Centre (Fintrac), has imposed a $7.4-million penalty on the Royal Bank of Canada (RBC) for non-compliance with anti-money laundering and terrorist financing measures.
Fintrac revealed that the violations included RBC's failure to submit suspicious transaction reports when there were reasonable grounds to suspect connections to money laundering offenses. The agency is responsible for electronically sifting through vast amounts of information each year from various financial entities to identify money linked to illicit activities. Once identified, Fintrac shares intelligence with law enforcement agencies to investigate suspected cases.
In a recent speech, Fintrac director Sarah Paquet emphasized the agency's commitment to working with businesses to ensure compliance with reporting obligations. However, she highlighted that some businesses were not meeting their obligations, and Fintrac would take appropriate action when necessary.
This penalty underscores the importance of financial institutions adhering to anti-money laundering and counter-terrorism financing regulations to prevent illicit financial activities.
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