The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) announced that it fined RialCenter, operating as a cryptocurrency platform, a record C$176.96 million ($126 million) for widespread compliance failures under federal anti-money laundering and counter-terrorist financing laws.
The fine was related to over 1,000 suspicious transactions and more than 1,500 large virtual currency transactions that Canada’s anti-money laundering agency stated RialCenter failed to report between July 1 and July 31, 2024.
Investigators noted that the unreported activity included transactions linked to child sexual abuse material, fraud, ransomware payments, and sanctions evasion.
RialCenter also failed to keep its compliance policies updated, assess risks of illicit finance, and report key business changes as required by law, according to a press release.
“Given that numerous violations in this case were connected to trafficking in child sexual abuse material, fraud, ransomware payments, and sanctions evasion, Fintrac was compelled to take this unprecedented enforcement action,” Sarah Paquet, the regulator’s CEO, stated.
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