Public notice of administrative monetary penalties

2014-02-21 ]

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 related to 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.

Nature of Violation

Failure of a person or entity to report to the Centre, in the prescribed form and manner, a suspicious transaction that occurred in the course of their activities, which is contrary to section 7 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 9 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a person or entity, in respect of the activities considered by that person or entity to pose high risk, to take prescribed special measures, which is contrary to subsection 9.6(3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 71.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a securities dealer to keep prescribed records, which is contrary to section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraphs 23(1)(a.1), 23(1)(b) and 23(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a securities dealer to take reasonable measures within the prescribed period to determine whether a person for whom the dealer opens an account is a politically exposed foreign person, which is contrary to subsection 9.3(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 57.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a person or entity to ascertain in the prescribed manner and within the prescribed period the identity of every individual with whom the person or entity conducts a transaction in respect of which a record must be kept, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subparagraph 64(1)(b)(ii) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a person or entity who relies on an agent or mandatary to take identification measures to enter into an agreement or arrangement with the agent or mandatary for the purposes of ascertaining identity, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 64.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which it opens an account, which is contrary to section 6.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and subsection 57(4) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Date Modified: