JLL Fined $108,000 by Canadian Regulator for AML Failures

Jones Lang Lasalle (JLL), a U.S.-based international real estate firm, has been fined $108,000 by Canada’s financial intelligence agency, FINTRAC, following a compliance audit that revealed multiple violations of the nation’s anti-money laundering (AML) and anti-terrorist financing laws.

FINTRAC, which is responsible for enforcing Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act across industries such as real estate, casinos, and financial institutions, imposed the penalty after identifying serious lapses in JLL’s compliance practices. The audit uncovered a failure on JLL’s part to establish and enforce internal protocols designed to prevent money laundering. This lack of adherence extended to weak record-keeping and a failure to ensure adequate management of transaction records, including deficiencies in identity verification procedures.

According to FINTRAC, the audit also revealed that JLL lacked a documented compliance training program and had not conducted the required biennial reviews of its policies. JLL has since paid the penalty, which concludes the enforcement process.

Sarah Paquet, director of FINTRAC, emphasized the importance of compliance, particularly in sectors like real estate. “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is crucial for our safety and economic security,” Paquet said, underscoring the agency’s commitment to holding companies accountable. She added that the watchdog would remain “firm” in ensuring that businesses follow AML protocols.

In Canada, the Money Laundering Act mandates that businesses implement a robust compliance program, including client identification and transaction reporting.

By fLEXI tEAM