Illegal operation of money-services business - Penal proceeding against Sylvain Brochu

Money-Services Businesses

Montréal - The Autorité des marchés financiers ("AMF") has launched a penal proceeding in the judicial district of Saint-François against Sylvain Brochu for operating a money-services businesses without a licence issued by the AMF. Under the Money-Services Businesses Act, he faces a minimum fine of $5,000 if found guilty of the charge.

Money-Services Businesses Act
This is the first proceeding launched by the AMF under the Money-Services Businesses Act. Since April 1, 2012, a business that offers any of the following services must hold a licence issued by the AMF: currency exchange, funds transfer, the issue or redemption of traveller's cheques, money orders or bank drafts, and cheque cashing. Since January 1, 2013, businesses that operate non-bank automated teller machines are also required to register with the AMF.

In addition to holding a licence issued by the AMF, businesses are required to meet certain obligations such as maintaining records and verifying the identity of customers. They are also subject to an AMF inspection program to ensure that they comply with the Act.

The AMF website provides a Register of money-services businesses that are licensed to operate in Québec. Persons or entities that operate a money services business but are already governed by certain other laws (such as banks, financial services cooperatives and insurers) are not subject to the requirements of the Act.

The Autorité des marchés financiers (the AMF) is the regulatory and oversight body for Québec's financial industry.

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