The bank failed to report suspicious financial activity that had possible links to money laundering
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has announced a $7.4-million penalty against the Royal Bank of Canada (RBC) for its failure to comply with measures concerning money laundering and terrorist financing.
In FINTRAC’s compliance examination last year, RBC was found to have failed in submitting reports on at least 16 transactions where there were “reasonable grounds” to suspect of having ties to possible money laundering offences.
RBC also failed to provide information on suspicious transactions in FINTRAC’s prescribed form and manner, as well as having failed to keep its written policies and procedures up to date.
FINTRAC noted that prior to May 2021, RBC was not filing separate reports for different branches.
Toronto-Dominion Bank faces anti-money laundering inquiries, including a US Department of Justice investigation.https://t.co/jHvRPcO0t8#businessnews #mortgageindustry #banks
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The $7.4-million fine was the largest penalty ever imposed by the agency, and the first of its kind among Canada’s Big Six banks.
“This penalty was imposed for administrative violations committed by RBC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations, and not for criminal offences for money laundering or terrorist activity financing,” FINTRAC said.
RBC spokesperson Gillian McArdle said that while the bank has chosen not to appeal the fine, the institution believes that the penalty is “not at all commensurate” with an administrative matter.
“We hold ourselves to the highest standards on our processes to report suspicious activity and quickly took action to address gaps,” McArdle told The Canadian Press. “Equally important, there is no finding that anyone exercised judgment in bad faith or knowingly contributed to violations.”
