The Rising Cost of Non-Compliance: Why MSBs Must Take FINTRAC Enforcement Seriously
Recent enforcement actions by FINTRAC serve as a stark reminder to Canadian money services businesses (MSBs) that regulatory compliance is not just a box to tick, it’s a business-critical priority. In the past few weeks alone, FINTRAC has issued over $700,000 in fines to a handful of MSBs that failed to meet their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The message is clear: FINTRAC is increasing its oversight, and MSBs must be prepared.
In a series of recent enforcement actions, FINTRAC has sent a strong message to the MSB sector. On June 10, MacFly Express Inc. was fined $206,250 for multiple violations, including failing to report suspicious transactions and inadequate recordkeeping, as outlined in FINTRAC’s announcement. This followed closely on the heels of a $331,000 penalty issued on May 29 to Silver International Services Ltd., whose violations included the absence of a documented compliance program and a failure to conduct a proper risk assessment, as detailed in that release.
Earlier in the month, on May 6, CanaExpress Ltd. was also hit with a $210,000 fine after FINTRAC identified several serious deficiencies, from inadequate identity verification processes to a complete lack of AML training for staff. That case is summarized in FINTRAC’s official notice.
In a series of recent enforcement actions, FINTRAC has sent a strong message to the MSB sector. On June 10, MacFly Express Inc. was fined $206,250 for multiple violations, including failing to report suspicious transactions and inadequate recordkeeping, as outlined in FINTRAC’s announcement. This followed closely on the heels of a $331,000 penalty issued on May 29 to Silver International Services Ltd., whose violations included the absence of a documented compliance program and a failure to conduct a proper risk assessment, as detailed in that release.
Earlier in the month, on May 6, CanaExpress Ltd. was also hit with a $210,000 fine after FINTRAC identified several serious deficiencies, from inadequate identity verification processes to a complete lack of AML training for staff. That case is summarized in FINTRAC’s official notice.
Enforcement is Intensifying
These are not isolated incidents. FINTRAC has made it clear that proactive enforcement is a key pillar of Canada’s broader anti-money laundering regime. For MSBs, this means the cost of getting it wrong, either through oversight or underinvestment in compliance, is higher than ever.
The financial penalties alone can be crippling, but the long-term damage to reputation and operations can be even more severe. Once publicized, enforcement actions undermine client trust, attract unwanted scrutiny, and may even impede access to banking and financial services.
Compliance is a strategic asset
In this context, strong AML compliance should be viewed not only as a regulatory requirement, but as a form of business protection. MSBs that invest in compliance infrastructure are better positioned to weather audits, avoid fines, and build trust with partners and clients.
However, many small and mid-sized MSBs lack the internal resources or expertise to navigate Canada’s complex regulatory landscape. That’s where external support becomes invaluable.
These are not isolated incidents. FINTRAC has made it clear that proactive enforcement is a key pillar of Canada’s broader anti-money laundering regime. For MSBs, this means the cost of getting it wrong, either through oversight or underinvestment in compliance, is higher than ever.
The financial penalties alone can be crippling, but the long-term damage to reputation and operations can be even more severe. Once publicized, enforcement actions undermine client trust, attract unwanted scrutiny, and may even impede access to banking and financial services.
Compliance is a strategic asset
In this context, strong AML compliance should be viewed not only as a regulatory requirement, but as a form of business protection. MSBs that invest in compliance infrastructure are better positioned to weather audits, avoid fines, and build trust with partners and clients.
However, many small and mid-sized MSBs lack the internal resources or expertise to navigate Canada’s complex regulatory landscape. That’s where external support becomes invaluable.
How we can help
We offer specialized Compliance Officer services tailored specifically for MSBs. Our team works closely with businesses to design and implement end-to-end compliance programs that align with FINTRAC’s expectations. Whether it’s developing a risk-based approach, ensuring staff training, preparing for an audit, or managing recordkeeping protocols, we help reduce your exposure to regulatory risk.
Our services are not just reactive, they’re proactive. We keep you informed about regulatory changes, help identify red flags early, and provide ongoing support that gives you peace of mind.
With FINTRAC stepping up enforcement and penalties reaching into six figures, MSBs can no longer afford to treat compliance as an afterthought. The risks are real, but so are the solutions. By partnering with experts who understand the regulatory environment, you can protect your business and turn compliance into a competitive advantage.
Contact us today to learn more about how our Compliance Officer services can safeguard your MSB and help you stay ahead of the curve.
We offer specialized Compliance Officer services tailored specifically for MSBs. Our team works closely with businesses to design and implement end-to-end compliance programs that align with FINTRAC’s expectations. Whether it’s developing a risk-based approach, ensuring staff training, preparing for an audit, or managing recordkeeping protocols, we help reduce your exposure to regulatory risk.
Our services are not just reactive, they’re proactive. We keep you informed about regulatory changes, help identify red flags early, and provide ongoing support that gives you peace of mind.
With FINTRAC stepping up enforcement and penalties reaching into six figures, MSBs can no longer afford to treat compliance as an afterthought. The risks are real, but so are the solutions. By partnering with experts who understand the regulatory environment, you can protect your business and turn compliance into a competitive advantage.
Contact us today to learn more about how our Compliance Officer services can safeguard your MSB and help you stay ahead of the curve.
