Jewellery shop hit with $66,000 fine

An Austin Avenue jewellery shop is facing a $66,000 fine for two violations including: “failure to assess and document the money laundering and terrorist activity financing risk,” according to a recent release from Canada’s financial transactions watchdog.

Austin Jewellers also failed to develop “written compliance policies and procedures,” according to a release from the Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC.

Austin Jewellers has appealed the decision to federal court.

Both violations were found during a 2019 compliance examination, according to FINTRAC.

The rules around money laundering and terrorist financing are in place: “to protect the safety of Canadians and the security of Canada’s economy,” according to a release from the agency.

Financial penalties are meant to be “non-punitive,” and to encourage businesses to change their behaviour, according to the agency.

“FINTRAC is committed to working with businesses to help them understand and comply with their obligations under the act,” FINTRAC director Sarah Paquet stated.

Austin Jewellers sells precious metals and stones. The shop also advertises repairs, appraisals and custom work.

The rules around money laundering and terrorist financing apply to businesses including casinos, financial entities, money services and real estate brokers, among others.

In 2022-23, FINTRAC issued six penalties totalling $1,113,569.

For a very serious violation, the agency can administer a maximum fine of $500,000.