Questrade, Inc., a securities dealer in Toronto, Ontario, was imposed an administrative monetary penalty of $346,140 on October 19, 2011, for committing nine violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (the Regulations).
Questrade, Inc. was found to have the following deficiencies:
- Failure to report a suspicious transaction;
- Incomplete compliance policies and procedures, failure to develop a written ongoing compliance training program and failure to take special measures for high risk activities;
- Inadequate practices of ascertaining client identity and confirming the existence of an entity other than a corporation, failure to enter into an agreement or arrangement with an agent or mandatary for the purposes of ascertaining identity, and incomplete record keeping;
- Failure to take reasonable measures to determine whether a person is a politically exposed foreign person.
FINTRAC press release link: click here