Watchdog to review practices after Manulife revealed as bank levied $1.15M penalty
TORONTO — Canada’s money-laundering watchdog says it will review its practices after it was revealed Monday that Manulife Financial Corp. was the unnamed financial institution levied the largest penalty in the federal agency’s history.
Last April, Fintrac penalized Manulife $1,154,670 for failing to report a suspicious transaction and various money transfers. At the time, the federal agency did not name the company’s bank, saying it was exercising its discretion to do so — a decision that prompted a public outcry.
Manulife confirmed in a statement issued Monday that its banking unit was the one penalized for “administrative lapses” that were remedied in the first half of 2014. The disclosure came after the CBC, citing anonymous sources, identified Manulife Bank as the financial institution fined by Fintrac last year.
Experts speculated Fintrac’s decision not to name Manulife Bank could have come from an agreement whereby Manulife agreed not to pursue an appeal and pay the penalty in exchange for anonymity. Neither Fintrac nor Manulife have confirmed such a deal took place.