Canadian Federal officials have fined the Industrial and Commercial Bank of China (ICBC), the Canadian branch of China’s largest state-controlled bank, $701,250 under the Proceeds of Crime and Terrorist Financing Act.
According to the Vancouver Sun, financial institutions are required by law to report all cash transactions of $10,000 or more to the Financial Transactions and Reports Analysis Centre (FINTRAC).
Blacklock’s journalist reports the fine was the heaviest of its kind this year.
ICBC violated the Act by “failure to submit suspicious transaction reports where there were reasonable grounds to suspect transactions were related to a money laundering or terrorist financing offence,” and “failure to treat activities in respect of a person or entity as high risk.”
In 2019, a routine FINTRAC review discovered loopholes in some circumstances in ICBC’s anti-money laundering program.
Sarah Paquet, CEO of FINTRAC, said in a statement, “We will be firm. We will take appropriate actions when they are needed.”