Kelowna real estate firm appeals $156K money laundering penalty
A Kelowna real estate firm is heading to court as it tries to appeal a federal money laundering penalty.
Norwich Real Estate Services Inc, which also operates as RE/MAX Kelowna, was hit with a $156,750 penalty in August. It failed to report a suspicious transaction where there were "reasonable grounds" to suspect it was related to money laundering, according to a news release from the Financial Transactions and Reports Analysis Centre (FINTRAC).
No information about the suspicious transaction was included in the FINTRAC news release, which was issued Oct. 27. The firm was fined on Aug. 28.
"Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada's economy," director and CEO Sarah Paquet said in the release.
Norwich appealed the fine in the Federal Court of Canada on Sept. 27, asking the federal regulator to send documents related to the investigation.
On the same day the news release was issued, FINTRAC sent the documents and agreed to keep them confidential from the public and the court registry as they negotiate a consent agreement, according to court documents.
Monetary penalties are meant to be "non-punitive," and they are instead issued to "encourage change in the non-compliant behaviour," according to the federal regulator. It's issued six penalties in 2022 and 2023 to businesses totalling $1.1 million.
"FINTRAC is committed to working with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed," Paquet said.
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