Regulator imposes six-figure penalty over weaknesses in compliance program
Canada's anti-money laundering watchdog has imposed a $107,250 penalty on Windsor, Ontario-based real estate brokerage Manor windsor Realty Ltd over what it described as serious weaknesses in the firm's compliance program.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the administrative monetary penalty on the brokerage following a compliance examination that found four violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The breaches included failures to maintain up‑to‑date, senior‑officer‑approved policies and procedures, to document money laundering and terrorist financing risk, to run an ongoing training program, and to test the effectiveness of its compliance regime.
“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,” FINTRAC director and CEO Sarah Paquet said.
“FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
A growing list of real estate penalties
Just two days earlier, FINTRAC posted a $148,912.50 penalty against Century 21 Heritage Group Ltd., another Ontario brokerage, also now under appeal at the Federal Court.
A suspicious transaction report was filed in that case, Century 21 Heritage Group managing partner Eryn Richardson said in a statement to Real Estate Magazine, but "FINTRAC determined that it should have been filed earlier based on its interpretation of risk indicators."
Regulators pointed to multiple red flags around that transaction, including a foreign buyer from a high‑risk jurisdiction, rapid changes of control between related parties and links to an industry that could serve as a venue for human trafficking for sexual purposes.
Richardson, however, said the monetary penalty "does not appropriately reflect the circumstances of the transaction" and pointed out that a suspicious transaction report was filed, with no criminal activity identified.
FINTRAC’s public notices showed that it has issued 23 notices of violation in 2024–25, more than in any previous year, totaling over $25 million across sectors from real estate to money services businesses.
In real estate alone, penalties on brokerages since 2020 have reached about $2.6 million, with an average penalty of roughly $110,000 and 24 firms sanctioned.
An internal FINTRAC report estimated that between $40 billion and $130 billion was laundered through Canada’s economy each year, with most audited real estate firms found out of step with AML standards.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
