A North Vancouver real estate brokerage, Pacesetter Marketing Ltd., has been fined $41,085 for violations of Canada's anti-money laundering laws. The penalty was issued by FINTRAC, the federal financial intelligence agency, following a compliance examination that revealed significant shortcomings in the company's adherence to regulations designed to combat financial crime.
Key Takeaways
- Pacesetter Marketing Ltd. received a $41,085 fine for failing to comply with anti-money laundering legislation.
- Violations included inadequate compliance policies, risk assessment failures, and lack of program review.
- A separate Vancouver-based brokerage, LeHomes Realty Premier, was fined a larger sum for multiple breaches.
- FINTRAC emphasizes its commitment to protecting the Canadian economy through enforcement.
Pacesetter Marketing Ltd. Violations
The compliance examination conducted by FINTRAC identified several critical failures by Pacesetter Marketing Ltd. The brokerage did not develop or maintain up-to-date written compliance policies and procedures that were approved by a senior officer. Furthermore, the company failed to adequately assess and document its risks, and did not conduct or report the required reviews of its compliance program.
These lapses indicate a systemic issue in the brokerage's approach to preventing financial crimes. The company has agreed to pay the full penalty, and FINTRAC has closed the case.
Broader Enforcement Actions
In conjunction with the penalty against Pacesetter Marketing Ltd., FINTRAC also imposed a substantial fine of $149,886 on 1135233 B.C. Ltd., operating as LeHomes Realty Premier in Vancouver. This firm faced more extensive penalties due to multiple breaches of the same legislation.
LeHomes Realty Premier's violations included failing to file a suspicious transaction report when mandated, not designating a person responsible for its compliance program, and lacking adequate policies for record-keeping, third-party determination, business relationships, and ongoing monitoring. The brokerage also failed to properly assess risks associated with its products, location, and clients, did not have a comprehensive staff training program, and maintained incomplete client identification records.
FINTRAC's Stance on Compliance
Sarah Paquet, Director and CEO of FINTRAC, issued a statement emphasizing the importance of the federal regime in safeguarding Canadians and the national economy. She noted that while FINTRAC collaborates with businesses to foster compliance, the agency will not hesitate to take enforcement actions when necessary to uphold the integrity of the financial system.
