Administrative violations: RBC receives a $7 million fine

The Royal Bank of Canada (RBC) must pay a fine of more than $7 million for committing three administrative violations, the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) announced.

FINTRAC therefore imposed a $7,475,000 penalty on RBC on November 3 “for non-compliance with Part 1 of the Proceeds of Crime Laundering and Terrorist Financing Act and related regulations,” according to a press release.

More specifically, RBC did not submit “suspicious transaction reports in relation to transactions that had reasonable grounds to suspect that they were related to the commission of a product recycling crime.” Additionally, the bank allegedly failed to “provide legally required information in suspicious transaction reports” and failed to keep its written policies and procedures current.

“FINTRAC is committed to working with businesses to help them understand and meet their obligations under the law. […] We will be determined to ensure that companies continue to do their part and that we take appropriate action when necessary,” recalls Sarah Paquet, Director, President and CEO of FINTRAC.