Investigation uncovers documentation failures, inadequate training, and missing records
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed a $107,827 fine on Jones Lang Lasalle Real Estate Services, Inc. (JLL) following a compliance audit that uncovered numerous failures to meet anti-money laundering and anti-terrorist financing standards.
The Toronto-based real estate firm was found to have violated key requirements under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), according to FINTRAC’s report.
The investigation revealed significant lapses in JLL’s compliance protocols.
JLL lacked thorough documentation and enforcement of internal policies to address money laundering or terrorist financing risks based on its business locations, client profiles, products, and delivery channels.
Further compliance gaps were found in JLL’s record-keeping practices, specifically in collecting and maintaining information on financial transactions and identity verification records.
Additionally, the brokerage failed to establish a documented compliance training program and neglected the prescribed biennial review of its compliance policies.
All compliance violations were fully paid for by JLL, ending the proceedings.
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy,” FINTRAC director and CEO Sarah Paquet said in a press release. “FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
As Canada’s financial intelligence unit, FINTRAC plays a critical role in overseeing compliance with the PCMLTFA, which applies to a range of business sectors, including casinos, financial entities, money services, and real estate brokers.
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Under the Act, businesses are required to establish a compliance regime that includes client identification, record keeping, and transaction reporting, particularly regarding suspicious activity.
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