The Financial Transactions and Reports Analysis Centre of Canada has imposed a CAD 693,742.50 administrative monetary penalty on 13010431 Canada Inc., operating as Necosmart, after a compliance examination found the Edmonton, Alberta money services business non-compliant with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. The penalty was imposed on March 27, 2026. The violations included multiple failures to submit suspicious transaction reports where there were reasonable grounds to suspect links to a money laundering or terrorist activity financing offence, alongside broader weaknesses in the firm's compliance framework. Necosmart also failed to maintain up-to-date written compliance policies and procedures approved by a senior officer, adequately develop and apply enhanced measures for high-risk transactions and clients, assess and document money laundering and terrorist financing risk using prescribed factors, and keep sufficient occupation and transactional information for virtual currency exchange transaction tickets.
Financial Transactions and Reports Analysis Centre of Canada 2026-05-14
Financial Transactions and Reports Analysis Centre of Canada imposes CAD 693,742.50 penalty on Necosmart for suspicious transaction reporting and compliance failures
The Financial Transactions and Reports Analysis Centre of Canada imposed a CAD 693,742.50 administrative monetary penalty on 13010431 Canada Inc., operating as Necosmart, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. A compliance examination identified failures to file suspicious transaction reports, inadequate compliance policies and procedures, insufficient enhanced measures for high-risk business, weak risk assessment and documentation, and incomplete information for virtual currency exchange transaction tickets.