The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has imposed an administrative monetary penalty of CAD 264,000 on Spence Diamonds Ltd. (operating as Spence Diamonds) after a compliance examination found non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. The penalty was imposed on 8 May 2025 and FINTRAC confirmed the company will pay it in full, ending proceedings. FINTRAC identified violations including failures to submit suspicious transaction reports when there were reasonable grounds to suspect links to money laundering or terrorist activity financing, maintain up-to-date written compliance policies and procedures approved by a senior officer, assess and document money laundering and terrorist financing risk using prescribed factors, implement a written ongoing compliance training program, and institute and document the prescribed review.
Financial Transactions and Reports Analysis Centre of Canada 2025-09-23
Financial Transactions and Reports Analysis Centre of Canada imposes CAD 264,000 penalty on Spence Diamonds for AML compliance failures
FINTRAC imposed a CAD 264,000 penalty on Spence Diamonds Ltd. for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Violations included failures in reporting suspicious transactions, maintaining compliance policies, risk assessment, training programs, and prescribed reviews. Spence Diamonds agreed to pay the penalty, concluding the proceedings.