A money services business based in Edmonton is facing a major financial penalty after Canada’s financial intelligence agency found repeated failures to meet federal anti-money laundering and counter-terrorist financing requirements.The Financial Transactions and Reports Analysis Centre of Canada announced it has imposed an administrative monetary penalty of $693,742.50 on 13010431 Canada Inc., which operates under the name Necosmart, following a compliance examination completed earlier this year.The penalty, issued March 27, stems from violations under Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations.According to FINTRAC, the company failed on multiple occasions to file suspicious transaction reports even when there were reasonable grounds to suspect links to money laundering or terrorist activity financing. The agency also found the business did not properly maintain or update written compliance policies, and that required approvals from senior management were missing.Regulators further identified gaps in risk assessment practices, saying the firm did not adequately document or assess the risk of money laundering or terrorist financing activity. Enhanced measures for higher-risk clients and transactions were also not properly applied, and record-keeping failures were noted in relation to virtual currency exchange transactions..FINTRAC said these administrative monetary penalties are intended to encourage businesses to comply with federal requirements and strengthen Canada’s financial safeguards.“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,” said Sarah Paquet, director and chief executive officer of FINTRAC. She added that while the agency works with businesses to support compliance, it will take enforcement action when necessary.As Canada’s financial intelligence unit, FINTRAC monitors compliance across sectors including money services businesses, casinos, financial institutions and real estate. These entities are required to keep detailed records, verify client identities and report certain transactions, including large cash transfers, international electronic funds transfers and suspicious activity reports.Suspicious transaction reporting is considered a key tool in helping law enforcement and national security agencies investigate money laundering, terrorist financing and sanctions evasion.FINTRAC has issued more than 150 penalties across regulated sectors since gaining enforcement authority in 2008, including 23 notices of violation in 2024–25 alone, totalling more than $25 million in penalties issued that year.
