February 1 2018
Canada’s watchdog against terror financing and money laundering has been partially neutered after losing a landmark court case over the way it penalizes offending businesses.
Since May 2016, the federal agency known as Fintrac has been unable to levy fines on firms that violate tough financing regulations — and will remain toothless until at least the summer when a review of its penalty program is completed.
That two-year hiatus in Fintrac’s ability to do its basic enforcement job began when the Federal Court of Appeal ruled on May 6, 2016, that the way the agency calculates fines against financial institutions is opaque and needs to be more transparent.
