Canadian jewellery retailer Birks Group has been fined more than CAD 50,000 by Canadian authorities following compliance shortcomings related to anti-money laundering and anti-terrorist financing regulations.
The Montreal-based jewellery company received an administrative monetary penalty of CAD 51,562.50 after an examination conducted by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the country’s financial intelligence agency responsible for monitoring suspicious financial activity.
FINTRAC Identifies Multiple Compliance Deficiencies
According to FINTRAC, the retailer committed three separate administrative violations under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The agency stated that Birks failed to maintain updated written compliance policies approved by senior management, did not adequately assess and document risks related to money laundering or terrorist financing, and failed to conduct and record mandatory compliance reviews every two years through an internal or external auditor.
The company had not issued an official public response at the time of reporting.
Canadian Authorities Stress Importance of AML Compliance
Sarah Paquet emphasized the importance of strong compliance standards in protecting Canada’s financial system and national security.
She stated that FINTRAC continues to work closely with businesses to help them meet their regulatory obligations, while also taking enforcement action when necessary to ensure accountability.
Record Number of Enforcement Actions in Canada
FINTRAC reported that during the 2024–25 period, the agency issued 23 noncompliance notices to businesses across different sectors, marking the highest annual total in its history. The penalties issued during the year exceeded CAD 25 million collectively.
Since its establishment in 2008, FINTRAC has imposed more than 150 administrative penalties across multiple industries as part of Canada’s anti-money laundering enforcement framework.
Reporting Rules Cover Large and Suspicious Transactions
Under Canadian law, businesses are required to report several categories of financial transactions to FINTRAC, including large cash deposits, international electronic fund transfers, suspicious financial activity, and significant virtual currency transactions.
The agency noted that suspicious transaction reporting remains critical in helping law enforcement and national security agencies investigate money laundering activities, terrorist financing, sanctions evasion, and broader financial threats.
Birks Also Addressed NYSE Compliance Concerns
Separately, Birks Group faced another compliance-related challenge earlier this year when the New York Stock Exchange notified the company that it was not meeting certain listing requirements.
The exchange later accepted the jeweller’s compliance plan and granted the company an extension to regain compliance until August 25, 2026.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
