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FINTRAC imposes $676,500 administrative penalty on Wealth One Bank of Canada
March 6, 2023
3:51 pm
Wayno
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News release

March 6, 2023—Ottawa—Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC announced today that it has imposed an administrative monetary penalty on Wealth One Bank of Canada. This bank in Toronto, Ontario, was imposed an administrative monetary penalty of $676,500 on February 15, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.

Wealth One Bank of Canada was found to have committed the following administrative violations:

  • Failure to develop compliance policies and procedures related to ministerial directives, ongoing monitoring of business relationships, as well as failure to apply in practice policies and procedures related to record-keeping;
  • Failure to assess and document the money laundering or terrorist activity financing risks of its geographic locations, as well as products and delivery channels;
  • Failure to institute and document the prescribed review of some requirements related to record-keeping; and
  • Failure to submit suspicious transaction reports where there were reasonable grounds to suspect that transactions were related to a money laundering offence.
  • These administrative deficiencies are NOT related to money laundering or terrorist financing offences. The administrative monetary PENALTY HAS BEEN PAID IN FULL by Wealth One Bank of Canada and THE CASE IS CLOSED.

    https://fintrac-canafe.canada.ca/new-neuf/nr/2023-03-06-eng

    March 6, 2023
    4:01 pm
    Wayno
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    Globe & Mail has just released this article two hours ago ( only available with subscription):

    Wealth One fined $676,500 for failing to comply with anti-money laundering law

    https://www.theglobeandmail.com/politics/article-wealth-one-money-laundering-law/#comments

    March 6, 2023
    5:39 pm
    Iconoclast
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    And so everyone sees the headlines "WealthOne" and "Money Laundering" and the conclusion is WealthOne is corrupt. Pure Government media smear tactics. Probably all they were guilty of is improper book keeping techniques.

    March 6, 2023
    6:19 pm
    Loonie
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    Personally, I'd rather know than not know.

    March 6, 2023
    6:27 pm
    AltaRed
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    Iconoclast said
    And so everyone sees the headlines "WealthOne" and "Money Laundering" and the conclusion is WealthOne is corrupt. Pure Government media smear tactics. Probably all they were guilty of is improper book keeping techniques.  

    The headline may be inappropriate but the callous disregard for regulatory reporting requirements is a sign of looking the other way, if not contempt and complicity.

    March 6, 2023
    6:38 pm
    Iconoclast
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    Unfortunately it is somewhat akin to accusing someone of rape or pedophilia, once the accusation is out there, there is no retraction in the eyes of the public, even if the person is innocent.

    March 6, 2023
    6:41 pm
    Loonie
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    No, it's not at all like rape or pedophilia.

    It's not 'he said, she said'.
    There are documents that are required by law and they do not exist. That's a big problem.

    March 6, 2023
    6:52 pm
    COIN
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    Iconoclast said
    Probably all they were guilty of is improper book keeping techniques.  

    I think Home Trust also ran into the same kind of deficient documentation issue.

    March 6, 2023
    7:01 pm
    AltaRed
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    COIN said

    I think Home Trust also ran into the same kind of deficient documentation issue.  

    Maybe but I believe their problems started by not doing sufficient due diligence and auditing of a good number of mortgage broker processes, i.e. lapses in mortgage brokers not pursuing and checking for factual data (versus forged/doctored documents). As I understand it, mortgage brokers have some(?) duty to verify/validate documentation and the mortgage companies like Home Trust rely to some extent on their work. That is for a different thread though....

    Back to the subject matter at hand, I've typically had some difficulty with upstarts and junior institutions who "may" be cutting corners in their effort to be profitable.

    March 6, 2023
    8:02 pm
    Iconoclast
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    Loonie said
    No, it's not at all like rape or pedophilia.

    It's not 'he said, she said'.
    There are documents that are required by law and they do not exist. That's a big problem.  

    It is the same because it is trial by media.

    March 6, 2023
    8:03 pm
    Iconoclast
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    "Facing pressure, PM punts on Chinese election interference allegations"

    Perhaps these two separate stories are somehow connected.

    March 6, 2023
    8:46 pm
    Loonie
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    No, it's not trial by media. As I said, it's about laws and documents.
    But there obviously isn't much point in pointing that out to you as you will just hop from one accusation to another.

    March 6, 2023
    9:24 pm
    Iconoclast
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    Wealth One fined $676,500 for failing to comply with anti-money laundering law

    When this is the headline, it is definitely trial by media.

    March 7, 2023
    4:21 am
    bhuc
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    Wealth One fined $676,500 for failing to comply with anti-money laundering law
    is NOT A TRIVIAL PENALTY !

    Shenglin Xian
    Wealth One Bank of Canada (stylized as WealthONE) is a Canadian Schedule I bank opened in 2016 with a focus on providing services to Chinese-Canadians.
    ...
    Wealth One Bank of Canada.
    Type Private Schedule I bank
    Founder Shenglin Xian
    Headquarters 170 Sheppard Ave East, Toronto, Ontario , Canada

    Is Shenglin Xian a Chinese citizen and by extension owned by the Chinese government?

    "The murky beginnings of a new Canadian bank "
    from Globe and Mail .....PUBLISHED NOVEMBER 24, 2016

    https://www.theglobeandmail.com/report-on-business/the-murky-beginnings-of-a-new-canadian-bank/article33034258/

    Where there is smoke there is fire !
    Could this be a Bernie Madoff moment ?

    March 7, 2023
    4:59 am
    savemoresaveoften
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    Iconoclast said

    Wealth One fined $676,500 for failing to comply with anti-money laundering law

    When this is the headline, it is definitely trial by media.  

    Point out which part of that statement is NOT the truth ?

    March 7, 2023
    6:38 am
    Iconoclast
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    By making that the headline, "Globe and Mail" implies, WealthOne was involved in money laundering. Those who do not read further will be left with that impression.

    Fintrac specifically states "These administrative deficiencies are NOT related to money laundering or terrorist financing offences"

    March 7, 2023
    7:33 am
    Norman1
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    Yes, the offences are related.

    Wealth One Bank got lucky. Those suspicious transactions they should have reported to FINTRAC didn't turn out to be actual money laundering. Same with their missing compliance policies and procedures that are required by anti-money laundering law and regulations. Lucky for the bank no terrorist or money launderer realized the bank was missing those policies and procedures.

    March 7, 2023
    9:06 am
    AltaRed
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    I find it interesting, and a bit disturbing, how some seem to be coming to the defense of Wealth One. I believe in a heavy regulatory hand on FIs which flagrantly disregard the law. This one really does smell.

    March 7, 2023
    10:16 am
    Canadianbull
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    Most of them are their investors so defending them makes sense sf-cool

    March 7, 2023
    11:11 am
    savemoresaveoften
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    Iconoclast said
    By making that the headline, "Globe and Mail" implies, WealthOne was involved in money laundering. Those who do not read further will be left with that impression.

    Fintrac specifically states "These administrative deficiencies are NOT related to money laundering or terrorist financing offences"  

    This is exactly what Fintrac said:
    "Failure to assess and document the money laundering or terrorist activity financing risks of its geographic locations, as well as products and delivery channels;"

    I will argue you are "implying" what G&M is "implying".... See how silly that is when you accuse someone of "implying".

    And why would the Fed and now G&M keep trying to bash WealthOne ? They step on Trudeau's toes??

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