Canada's anti-money-laundering regulator, FINTRAC, has levied significant administrative monetary penalties totaling more than $190,000 against two British Columbia-based real estate brokerages. The fines were imposed on LeHomes Realty Premier and Pacesetter Marketing Ltd. for multiple breaches of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Key Takeaways
- Two B.C. real estate companies, LeHomes Realty Premier and Pacesetter Marketing Ltd., have been fined a combined $190,000 by FINTRAC.
- LeHomes Realty Premier received the larger penalty of $149,886 for six violations, including a "very serious" failure to report suspicious transactions.
- Pacesetter Marketing Ltd. was fined $41,085 for three "serious" violations related to compliance policies and risk assessment.
- Both companies have accepted the penalties and will not appeal, with FINTRAC stating the fines aim to encourage behavioral change.
LeHomes Realty Premier Faces Substantial Fine
LeHomes Realty Premier was ordered to pay $149,886 for six violations of anti-money laundering regulations. The most serious offense involved a failure to submit a suspicious transaction report when there were reasonable grounds to suspect transactions were linked to money laundering. FINTRAC inspectors identified numerous indicators of money laundering and terrorist financing in LeHomes' transactions, including activity inconsistent with client financial standing, clients avoiding association with properties, and transactions involving individuals from high-risk locations.
LeHomes' other violations, deemed "serious" and "minor" by FINTRAC, included:
- Failure to ensure an appointed person was responsible for the compliance program.
- Inadequate compliance policies and procedures for record-keeping, third-party determination, business relationships, and ongoing monitoring.
- Failure to assess the money laundering and terrorist financing risks associated with its products, services, geographic location, clients, and business relationships.
- Insufficient documentation and delivery of staff training programs.
- Incomplete client identification records.
Pacesetter Marketing Ltd. Penalized for Compliance Lapses
Pacesetter Marketing Ltd. received a penalty of $41,085 for three "serious" violations. These breaches centered on:
- Failure to develop and maintain up-to-date written compliance policies and procedures, approved by senior management.
- Failure to assess and document risks associated with its operations.
- Failure to institute and document prescribed reviews.
FINTRAC's Role and Enforcement
FINTRAC, Canada's financial intelligence unit, imposes administrative monetary penalties to compel businesses to correct non-compliant behavior. The regulator reported a significant increase in enforcement actions during its 2024-25 fiscal year, issuing 23 notices of violation and assessing over $25 million in penalties, the highest number of violations in its history.
