The review, covering conduct from late 2022 to April 2024, revealed that the bank’s compliance program lacked sufficient maturity.
In response to the decision, Exchange Bank of Canada has filed a notice of appeal.
“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,” Sarah Paquet, director, and chief executive of Fintrac.
“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.”
The issue highlights growing scrutiny of money-laundering practices following revelations that TD Bank Group’s oversight failures in the US enabled criminals to launder hundreds of millions of dollars from illegal drug sales.