Federal regulators have fined an Ontario securities dealer $66,000 for paperwork errors related to anti-money laundering compliance, despite past court rulings criticizing the agency for imposing arbitrary penalties over minor infractions.
The Financial Transactions and Reports Analysis Centre (FINTRAC) announced the penalty, stating that the violations were found during a compliance review.
Argosy Securities Inc. of Richmond Hill, Ont., was cited for “incomplete” anti-money laundering guidelines. The firm paid the fine in full, and the case was closed.
FINTRAC mandates that financial professionals, including securities dealers, bankers, and realtors, report all cash transactions over $10,000. However, court rulings since 2017 have raised concerns over the agency’s approach to penalties, with judges questioning the lack of transparency in how fines are determined.
In a previous case, Federal Court Justice Jocelyne Gagné ruled that FINTRAC’s penalty system lacked clarity, stating it was “impossible to determine” whether decisions were made fairly.
Another case in 2016 saw a Mississauga grocer, Kabul Farms Inc., initially threatened with a $150,000 fine for sending small remittances — some as low as $20 — to customers' families overseas. The fine was later reduced to $6,000 before being dismissed entirely by a federal judge.
The Federal Court of Appeal upheld the dismissal, with Justice David Stratas criticizing FINTRAC’s unexplained penalty reductions. “Why?” the Court wrote. “We have no idea.”
