Securities dealer Hub Capital Inc. is being sanctioned by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for a handful of compliance violations.
The federal anti-money laundering agency fined the Woodbridge, Ont.-based firm $99,000 for breaches involving its written policies and procedures, compliance training program and oversight of those policies.
The violations, uncovered in a 2023 compliance review, were all classified as “serious” by FINTRAC.
In a notice, the agency detailed the results of that review, which included a finding that the firm didn’t “sufficiently develop and document its compliance policies and procedures in relation to reporting and know your client requirements.”
It also found that the firm didn’t provide sufficient ongoing monitoring of its business relationships and that its policies didn’t specifically address requirements for dealing with money laundering concerns involving North Korea.
“Hub Capital Inc.’s risk-based assessment was incomplete as it did not thoroughly assess and document the money laundering and terrorist financing risks related to clients and business relationships, products and delivery channels, and geographic locations,” FINTRAC said.
The agency also found that the firm’s risk assessment “did not document an adequate methodology for the assessment of its money laundering and terrorist activity financing risks, nor did it include a rationale to support the risk levels determined by the organization.”