Manulife was subject to FINTRAC fine
TORONTO Canada’s anti-money laundering watchdog is reviewing its policies after Manulife Financial Corp. revealed Monday its domestic banking unit was subject to an administrative penalty meted out by FINTRAC.
FINTRAC disclosed last April that it had levied a $1.15 million penalty against a bank, but the director of Canada’s financial intelligence unit elected not to identify the bank.
“In making this decision, I took into consideration the fact that the violations were of a technical nature and I emphasize that the penalty has nothing to do with money laundering or the financing of terrorism,” Gérard Cossette, FINTRAC’s director, said in a statement Monday. “However, in exercising my discretion to withhold the name of the bank, I understand that it may not have met public expectations in relation to openness and transparency.”
Cossette said FINTRAC will now work with Finance Canada to review legislation related to its penalty program, and will review penalty policies to ensure they “strike an appropriate balance between the need for transparency and the requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.”
Manulife issued a statement Monday acknowledging the administrative penalty after Manulife Bank was identified in a CBC report as the financial institution at the heart of the FINTRAC matter.
The penalty resulted from “administrative lapses in reporting” at Manulife Bank, according to the company’s statement.
“Manulife did not enable or facilitate money laundering,” the company said. The statement noted that one violation involved a customer whose activities had already been reported to law enforcement and FINTRAC by Manulife.
“There is no evidence to suggest that the administrative reporting violations were connected to any financial misconduct,” Manulife said, adding that the administrative reporting lapses were “remedied in the first half of 2014.”