FCC PoI

On December 5, 2023, the Royal Bank of Canada (RBC) received a fine of US$5.52 million from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for administrative violations of its anti-money laundering (AML) and counter-terrorist financing rules.

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Following a compliance examination in 2022, FINTRAC identified three administrative violations by RBC. These included a failure to submit suspicious transaction reports (STRs), deficiencies in providing required information, and lapses in maintaining updated policies and procedures.

FINTRAC discovered that RBC did not file separate suspicious transaction reports for different branch locations before May 2021. Additionally, the bank lacked appropriate and documented governance for implementing AML procedures.

Furthermore, the agency reported that, out of 130 case files reviewed, RBC failed to submit 16 suspicious transaction reports.

The penalty was imposed under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, not for criminal offenses related to money laundering or terrorist activity financing.