Editor’s Note
This article details a significant compliance penalty levied against a major Canadian jeweller, highlighting the serious financial consequences of failing to meet regulatory obligations in financial reporting.
A prominent Vancouver-based diamond jeweller has been fined a substantial amount for various violations.
According to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Spence Diamonds, headquartered in Vancouver with locations across Canada (including Vancouver, Langley, Edmonton, and Ottawa), was issued five violations, resulting in a total monetary penalty of $264,000.
Violation #1, which FINTRAC classifies as “very serious,” was in relation to failing to submit suspicious transaction reports, where there were reasonable grounds to suspect that transactions were related to a money laundering or terrorist activity financing offence.
Following FINTRAC’s examination, there were signs that transactions were attempted by clients, “where numerous money laundering and terrorist financing indicators were present.”
FINTRAC determined that Spence had reasonable grounds to suspect that the clients were associated with those related to the commission or attempted commission of a money laundering or terrorist financing offence.
Violations #2 through #5 were all classified as “serious” and stemmed from the initial “very serious” violation.
Violation #2 related to Spence failing to develop compliance policies and procedures that were kept up to date. Under violation #3, FINTRAC stated that Spence’s risk assessment document was incomplete, and the diamond jeweller did not document procedures for identifying high-risk clients.
Violation #4 found that Spence’s compliance training program was incomplete, as it failed to provide documentation to demonstrate that training had been delivered to all of Spence’s staff.
Violation #5 pertained to Spence’s failure to conduct a review of its compliance program to assess the effectiveness of its policies, procedures, risk assessment, and training program.
While FINTRAC revealed the news on Sept. 23, Spence was hit with the $264,000 fine on May 8, 2025.