Canadian jewellery retailer Birks Group has been issued an administrative monetary penalty of C$51,562.50 by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), following a compliance examination under Canada’s anti-money laundering and anti-terrorist financing legislation.
The penalty was imposed on 11 March 2026 under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. FINTRAC announced the enforcement action on 5 May.
Birks, which operates jewellery retail locations across Canada, was cited for three compliance violations relating to its anti-money laundering framework. The company has appealed FINTRAC’s decision to the Federal Court of Canada.
Compliance Issues Cited by FINTRAC
According to FINTRAC, the findings related to written compliance policies and procedures, risk assessment documentation and the completion of a required two-year review by an internal or external auditor.
The regulator said Birks had failed to develop and apply written compliance policies and procedures that were kept up to date and approved by a senior officer. It also cited failures to assess and document the risk of money laundering or terrorist financing offences, taking prescribed risk factors into account, and to carry out and document the results of a required review every two years.
In a statement provided following the announcement, Birks said: “Birks Group takes its regulatory and compliance obligations seriously and cooperated throughout FINTRAC’s review process. We disagree with FINTRAC’s decision and have appealed the decision to the Federal Court of Canada. Nevertheless, we remain committed to maintaining appropriate compliance policies and procedures across our organization.”
Regulatory Requirements for Precious Metals and Stones Dealers
FINTRAC said the action forms part of Canada’s wider anti-money laundering and anti-terrorist financing regime, which applies to sectors including financial institutions, casinos, money services businesses, real estate and dealers in precious metals and precious stones.
Sarah Paquet, director and chief executive officer of FINTRAC, said: “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
Businesses covered by the legislation are required to maintain compliance programmes, identify clients, keep records and report certain transactions to FINTRAC, including large cash transactions, international electronic funds transfers, suspicious transactions and large virtual currency transactions.
What it Means for Jewellery Retailers
The case highlights the compliance obligations that apply to Canadian dealers in precious metals and precious stones, particularly businesses handling high-value transactions.
For jewellers operating in Canada and other regulated markets, the enforcement action is a reminder of the need to maintain documented compliance procedures, complete regular risk assessments and ensure mandatory reviews are carried out and recorded.
FINTRAC has stated that administrative monetary penalties are intended to encourage corrective action and improved compliance behaviour among reporting entities, rather than serve as punitive measures.
The agency issued 23 notices of non-compliance during the 2024-25 financial year, representing the highest annual total since it gained penalty powers in 2008.
