Federal anti-money-laundering agency fines West Vancouver real estate firm $83K

A real estate broker in West Vancouver has been fined more than $83,000 for failing to comply with federal money laundering rules.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed the “administrative monetary penalty” against Masters Realty (2000) Ltd. – which operates as RE/MAX Masters Realty – back in January. It published details of the case on its website Tuesday.

The fine stems from five violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and its associated regulations, which were discovered during a compliance examination of Masters Realty in 2021, according to a statement from FINTRAC.

Those five violations included failing to adequately apply its policies and procedures, failing to assess and document money laundering or terrorist activity financing risks, failing to complete a “prescribed review” of its policies, and failing to keep prescribed information – including identification – about its clients.

The total penalty imposed was $83,655, and FINTRAC says the company has paid it in full.

The federal agency’s public notification about the case specifically notes that Masters Realty had policies in place to comply with the rules, but failed to “consistently apply certain requirements in practice.” 

The company failed to record the identification information of two people who provided funds. There were also two instances in which the company did not record “the nature” of a client’s “principal business” and another in which a client’s occupation information was “vague and insufficiently detailed.”

FINTRAC’s administrative monetary penalties “are meant to be non-punitive and are issued to encourage change in the non-compliant behaviour of businesses,” the agency said in a news release Tuesday.

“Canada’s anti-money-laundering and anti-terrorist-financing regime is in place to protect the safety of Canadians and the security of Canada’s economy,” said Sarah Paquet, FINTRAC’s director and CEO, in the release.

“FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”

Since last year, FINTRAC says it has issued 12 violation notices for a total of more than $26 million. The agency has imposed administrative penalties on more than 140 companies “across most business sectors” since receiving the authority to do so in 2008.