This week’s developments include new Canadian sanctions, terrorism and fraud investigations, follow-up analysis of a major U.S. AML enforcement action, and renewed scrutiny of government data sharing with financial institutions.
Canada expanded its Iran-related sanctions by adding five individuals, including senior IRGC and military officials, a parliamentarian, and an oil sector representative, citing activities that undermine international peace and navigation rights around the Strait of Hormuz. The measures impose dealings prohibitions and render the individuals inadmissible to Canada, bringing the total sanctioned under this framework to 232 individuals and 260 entities.
Compliance Week examines the years of unresolved AML deficiencies behind FinCEN’s record US$125 million penalty against UBS Financial Services, including delayed remediation following a 2018 consent order, gaps in foreign-currency wire monitoring, and significant customer due diligence weaknesses. The analysis focuses particularly on the consequences of repeat non-compliance and FinCEN’s treatment of previously identified deficiencies that remain unresolved.
A Halifax man faces a terrorism-related Criminal Code charge after an alleged bomb threat against the U.S. Consulate, with police finding a propane tank and containers of flammable liquid in a vehicle near the consulate. Separately, the Vancouver Sun reports that a North Vancouver currency exchange specializing in Canada-Iran transfers has halted transactions, with its owner saying $4 million to $5 million is owed to customers, while RCMP investigate a fraud complaint and questions remain about the business’s FINTRAC registration status.
Juno News reports that newly released federal records show personal information on Freedom Convoy supporters was distributed to as many as 2,000 brokerages and other firms, as well as approximately 50 financial institutions, industry groups, and regulators, without restrictions on further distribution. The RCMP also shared the information with Canadian operations of several foreign financial institutions, raising questions about privacy, controls over further sharing, and the downstream use of information collected under the Emergencies Act financial measures.
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