Canaccord Genuity fined record US$80 million in U.S. over compliance lapses

The logo for Canaccord Genuity is shown in Toronto. THE CANADIAN PRESS/Staff

Canaccord Genuity accepted a record US$80 million (C$109 million) civil fine to resolve U.S. regulatory charges it willfully violated the Bank Secrecy Act, the main U.S. anti-money-laundering law, by failing to monitor suspicious trading.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN, called the penalty the largest ever against a broker-dealer for violating the Bank Secrecy Act.

Investigators said that between 2019 and 2022, Canaccord failed to file at least 160 suspicious activity reports covering thousands of questionable transactions, with some activity that deserved “red flags” going un-reviewed for months or years.

FinCEN said the suspicious activity included an account for a Cyprus-based firm that spent years helping Russian oligarchs move money out of Russia.

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Investigators also said two compliance employees falsified records to make it appear that Canaccord was reviewing trade surveillance reports.

Canaccord conducted a high volume of trades in over-the-counter securities that cost less than US$5 per share.

The Toronto-based company ended 2025 with C$144.8 billion ($106.3 billion) of client assets in its global wealth management unit.

“Today’s action should be a wake-up call to broker-dealers that willfully fail to comply with their obligations to safeguard the financial system from illicit actors,” FinCEN Director Andrea Gacki said in a statement.

Canaccord’s fine will be split among the Treasury Department, the U.S. Securities and Exchange Commission and the industry-funded watchdog Financial Industry Regulatory Authority.

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The Treasury Department will reduce its fine by US$5 million, lowering the total payout to US$75 million, if Canaccord follows the recommendations of an independent compliance consultant. Canaccord has set aside US$75 million for the settlement, and boosted staffing, training and surveillance.

“We have overseen a wholesale change in compliance leadership and oversight, working closely with management to enhance the culture of compliance, while engaging constructively with regulators,” Canaccord lead independent director Michael Auerbach said in a statement. “This reflects our responsibility to all stakeholders and our enduring commitment to maintaining trust, transparency, and sound governance.”