FINTRAC Imposes Administrative Monetary Penalty on Forest Hill Real Estate Inc

• FINTRAC has imposed an administrative monetary penalty on Forest Hill Real Estate Inc.
• The company is listed on FINTRAC's public list of entities subject to enforcement action, with the case now closed.
• Administrative monetary penalties are a key tool used by FINTRAC to enforce compliance with Canadian anti-money laundering regulations.
• Lawyers should review their clients' AML policies and procedures in light of FINTRAC's increased scrutiny and penalty enforcement.

The imposition of an administrative monetary penalty on Forest Hill Real Estate Inc. serves as a reminder to all entities subject to Canadian anti-money laundering regulations of the importance of compliance.

FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, has taken enforcement action against Forest Hill Real Estate Inc. The centre made public a list on its website detailing entities that have been imposed an administrative monetary penalty. According to this list, Forest Hill Real Estate Inc. is among those entities. This move by FINTRAC underscores the importance of compliance with Canadian anti-money laundering regulations.

The administrative monetary penalty imposed on Forest Hill Real Estate Inc. was $22,770 on October 28, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. The case is now closed. Forest Hill Real Estate Inc. was found to have committed violations including failure to develop complete written compliance policies and procedures, failure to assess and document money laundering or terrorist activity financing risks, and failure to keep prescribed records and identification information.

The list maintained by FINTRAC is regularly updated to reflect changes in the status of entities subject to enforcement action. This includes entities that have been issued warnings, imposed administrative monetary penalties, or had their licenses revoked.

Administrative monetary penalties are a key tool used by FINTRAC to enforce compliance with Canadian anti-money laundering regulations. These penalties can be issued for various reasons, including failure to report suspicious transactions, inadequate customer due diligence, or insufficient training of employees.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act sets out the framework for these regulations. It requires entities subject to its provisions to implement effective anti-money laundering measures, which include reporting suspicious transactions to FINTRAC.

FINTRAC's role in enforcing these regulations is critical to preventing money laundering and terrorist financing activities in Canada. The centre's actions are guided by its mandate under the Act, which includes identifying, assessing, and mitigating risks associated with money laundering and terrorist financing.

The imposition of an administrative monetary penalty on Forest Hill Real Estate Inc. serves as a reminder to all entities subject to Canadian anti-money laundering regulations of the importance of compliance.

Lawyers advising clients in this sector should review their clients' AML policies and procedures to ensure they are meeting the requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

This case highlights FINTRAC's increased scrutiny and penalty enforcement. As a result, entities must be vigilant in maintaining effective anti-money laundering measures to avoid similar consequences.

Lawyers should watch for potential compliance exposures and review their clients' AML policies in light of FINTRAC's increased scrutiny and penalty enforcement.

Source: Original reporting via News release: FINTRAC imposes an administrative monetary penalty on Forest Hill Real Estate Inc.