Manulife says its banking unit was penalized by Fintrac for ‘administrative lapses’

Manulife confirms it was penalized by watchdog

TORONTO — Manulife Financial Corp. confirmed Monday its banking unit was penalized last year after Canada’s money-laundering watchdog concluded it failed to report a suspicious transaction and various money transfers.

Last year, Fintrac fined the bank $1.15 million, but it withheld the bank’s identity, saying it was exercising its discretion to do so.

Manulife Financial issued a statement Monday saying Manulife Bank was fined for “administrative lapses.”

“Although we operate at the highest ethical standard, we are capable of administrative errors. They were remedied in the first half of 2014,” the company said.

“There is no evidence to suggest that the administrative reporting violations were connected to any financial misconduct.”

The statement came after the CBC, citing anonymous sources, identified Manulife Bank as the financial institution fined by Fintrac last year.

“Manulife did not enable or facilitate money laundering,” Manulife Financial said.

“One violation involved a customer who had already been reported to law enforcement and Fintrac by Manulife. Additional information released by Fintrac in 2016 shows that Manulife proactively worked with law enforcement in both Canada and the United States in relation to the matter underlying the one suspicious transaction report (STR) violation, including advising law enforcement prior to the failure to file this one STR.”

Manulife Financial (TSX:MFC), one of the country’s biggest financial services businesses, said it considers the matter closed and doesn’t plan further comment. A spokesman declined to answer any questions on the matter.

Since March 2012, Fintrac has meted out $3.54 million in fines against 79 entities. Manulife Bank is the only bank to have been fined by Fintrac in that time and its penalty is the largest of any that the federal agency has issued.

Experts speculated Fintrac’s decision to not name Manulife Bank could have come from an agreement whereby Manulife agreed not to pursue an appeal and pay the $1,154,670 fine in exchange for anonymity. Neither Fintrac nor Manulife have confirmed such a deal took place.

The office of Finance Minister Bill Morneau deferred comment to Fintrac, which did not immediately respond to requests for comment.

Aleksandra Sagan, The Canadian Press

Just Posted

One acre fire on Big White Road

Joe Rich Fire Departmetn responding alongside Big White Fire Department

Half-priced cat adoptions at the Kelowna SPCA

Adult cats are 50 per cent off until July 29 at the Kelowna shelter

Wildfire remains out of control near Lake Country

Lake Country - The fire started near Dee Lake, southwest of Coldstream yesterday

Kelowna RCMP investigating after woman finds a bullet in her car

The police believe it was an act of negligence

Waters: Can retired Kelowna top cop leave his old badge at the door?

Current and former Kelowna RCMP superintendents using different approaches to tackle downtown crime

Trudeau asks transport minister to tackle Greyhound’s western pullout

Prime Minister Justin Trudeau says he’s asked Transport Minister Marc Garneau to find solutions in Greyhound Canada’s absence.

Hub for mental health and addictions treatment opens at B.C. hospital

St. Paul’s Hospital HUB is an acute medical unit that includes 10 patient beds

Pike Mountain fire continues to grow – quadruples in 24 hours

Fire threatens area consumed in 2017 by a 3,500 hectare blaze

Vernon Knights hire Van Horlick

New head coach of Junior B franchise in Armstrong

St. Albert knocks down Canadians

Finals of Valley of the Champions

Restaurant Brands International to review policy over poaching employees

One of Canada’s largest fast-food company to review ‘no-poach’ franchise agreements

Calgary family’s vacation ends in tragedy on Texas highway

Three people died and four others were injured in the crash

Union construction cost competitive, B.C. Building Trades say

Non-union firms can bid on infrastructure, but employees have to join international unions

Arrows stick it to Adanacs

Vernon Men’s Baseball League playoff final

Most Read