RBC given $7.5m penalty by FINTRAC over administrative AML failures


The Royal Bank of Canada (RBC) has been issued a $7.5m penalty by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) over AML shortcomings. 

Dating back to last November, the penalty is in reference to a compliance examination of the bank conducted by FINTRAC in 2022. The results showed evidence of non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

According to FINTRAC, RBC was responsible for three administrative violations that included failure to submit suspicious transaction reports, failure to provide information in the prescribed form and manner in suspicious transactions reports, and failure to keep written policies and procedures up to date.

FINTRAC also reinstated that the penalty has been issued in regards to administrative violations and not for criminal activity relating to money laundering or terrorism financing

Sarah Paquet, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada, commented: “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. 

“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.”