The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) has levied a $7.475 million penalty against the Royal Bank of Canada (RBC) for failing to comply with anti-money laundering and terrorist financing measures. The penalty is the largest ever imposed by Fintrac.
Fintrac’s investigation found that RBC failed to submit suspicious transaction reports (STRs) on 16 occasions, even though there were reasonable grounds to suspect that the transactions were linked to money laundering or terrorist financing. The agency also found that RBC failed to provide information in the prescribed form in STRs, and did not keep written policies and procedures up to date.
RBC has acknowledged the violations and has taken steps to improve its compliance with anti-money laundering regulations. However, the bank has also said that it believes the penalty is “not at all commensurate” with the violations.
Fintrac has said that the penalty is intended to encourage RBC and other businesses to improve their compliance with anti-money laundering regulations. The agency has also said that it will continue to take action against businesses that fail to comply with the law.