Canada's Financial Transactions and Reports Analysis Centre, FINTRAC, imposed a penalty of C$2,457,750 on Exchange Bank of Canada on 5 November 2024, following a supervisory examination of the institution's compliance with federal anti-money laundering and anti-terrorist financing obligations. The examination covered the period from December 2022 to April 2024 and identified multiple categories of failure in the bank's compliance programme.
THREE CATEGORIES OF COMPLIANCE FAILURE
FINTRAC's examination identified three principal categories of compliance failure at Exchange Bank of Canada. First, the institution failed to submit suspicious transaction reports as required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Second, the bank failed to conduct adequate ongoing monitoring of its business relationships. Third, it failed to report large cash transactions of C$10,000 or more.
Exchange Bank of Canada specialises in foreign currency exchange and international payments.