First Nations Bank of Canada (FNBC), headquartered in Saskatoon, Saskatchewan, was fined CAD 601,139.80 for multiple violations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The violations included:
- Failure to submit Suspicious Transaction Reports (STRs) when there were reasonable grounds to suspect transactions were related to money laundering or terrorist financing.
- Failure to develop and maintain up-to-date written compliance policies and procedures, approved by a senior officer.
- Failure to assess and document the risk of money laundering or terrorist financing activities.
FINTRAC emphasized the importance of compliance to protect the safety and security of Canada’s financial system and stated that administrative monetary penalties aim to encourage businesses to rectify non-compliant behaviour.