RBC hit with $7.5-million penalty from financial intelligence agency
Royal Bank of Canada has been ordered to pay a nearly $7.5-million penalty for administrative violations under the Proceeds of Crime (Money Laundering) and Terrorist Finance Act and associated regulations.
In a notice published on its website Dec. 5, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said, among other things, RBC failed to submit 16 suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to the commission or attempted commission of a money laundering or terrorist activity financing offence.
The anti-money laundering agency found three types of infractions involving the 16 cases in a 2022 compliance review of 130 case files.
In addition to taking issue with RBC’s reporting of suspicious transactions, the review also found shortcomings in the bank’s methods for developing, updating and implementing policies and procedures to guard against money laundering and terrorist financing.
“This penalty was imposed for administrative violations committed by RBC … and not for criminal offences for money laundering or terrorist activity financing,” FINTRAC said on its website in reference to the penalty that was imposed Nov. 3.
A spokesperson for RBC said the bank holds itself to the highest standards on processes to report suspicious transactions and quickly took action to address gaps.
“We chose not to appeal but believe the fine is not at all commensurate with an administrative matter where there is no connection to money laundering or terrorist financing offences,” Ingrid Mone, senior manager of the corporate communications, legal affairs and compliance group at RBC, said in an emailed statement on Dec. 5.
“Equally important, there is no
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