Xeltox Enterprises Ltd. just faced a staggering $176,960,190 million FINTRAC penalty on October 16, 2025 (FINTRAC, 2025). Xeltox Enterprises Ltd. committed “2,593 contraventions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations” (FINTRAC, 2025). This case highlights the costly consequences of ignoring reporting entity obligations and money laundering regulations.
FINTRAC Penalties Explained
Who Is Xeltox Enterprises Ltd.?
Xeltox Enterprises Ltd., a recognized entity in the money services business sector, was recently the subject of a significant enforcement action by FINTRAC. Operating under the name Cryptomus and formerly known as Certa Payments Ltd., the company provides virtual currency transaction services. Although incorporated in British Columbia and registered with a Vancouver address, this location corresponds to a mailbox service and differs from the address in the British Columbia Registry Services (FINTRAC, 2025). During an examination in March 2025, FINTRAC discovered that representatives of Xeltox communicated from Uzbekistan and Spain, confirming the absence of any employees working in Canada (FINTRAC, 2025).
Administrative Monetary Penalty
On October 16, 2025, FINTRAC imposed an administrative monetary penalty of $176,960,190 on Xeltox Enterprises Ltd. in response to these 2,593 violations spanning six different categories (FINTRAC, 2025). The sole director, Sabina Salim Kizi Berdieva of Uzbekistan, and representative Renata Andreyevna Kakhanova of Kazakhstan were found to be operating outside Canada, raising concerns about the transparency and credibility of the company’s Canadian presence (FINTRAC, 2025).
Violation by Violation: What Went Wrong
Violation #1
Xeltox Enterprises Ltd. failed to report 1,068 suspicious transactions to FINTRAC related to money laundering from July 1, 2024, to July 31, 2024 (FINTRAC, 2025). These transactions linked to suspicious sources, had addresses associated with the darknet marketplace, and involved entities engaged in criminal activities (FINTRAC, 2025). Failure to submit these reports can result in serious legal issues and substantial fines. For Xeltox, this oversight was a significant factor in their penalty.
Violation #2
Xeltox Enterprises Ltd. also failed to comply with a Ministerial Directive, which constitutes a serious breach. FINTRAC reports that there were 7,557 instances where Xeltox Enterprises Ltd. failed to report transactions originating from Iran to FINTRAC between July 1, 2024, and December 31, 2024 (FINTRAC, 2025). In these cases, they did not identify the sender or beneficiaries, perform due diligence, or keep records of the transactions.
Violation #3
Another major violation was the absence of clear compliance policies and procedures. FINTRAC reported that Xeltox Enterprises Ltd.’s policies were not tailored to their organization and were outdated in areas like KYC, PEP, and reporting obligations on suspicious transactions (FINTRAC, 2025). Implementing robust procedures is essential for any business dealing with finances. Without them, mistakes that could have been avoided are easily made.
Violation #4
Xeltox Enterprises Ltd. failed to assess and document risks related to money laundering and terrorist financing activities effectively. According to FINTRAC, Xeltox Enterprises Ltd. did not evaluate the risks associated with their products, services, and delivery channels (FINTRAC, 2025). Furthermore, Xeltox Enterprises Ltd. neglected to establish risk assessment processes for clients and business relationships. Lastly, they did not evaluate the specific geographical risks linked to their operations.
Violation #5
FINTRAC found that Xeltox Enterprises Ltd. did not maintain up-to-date registration information with the Centre (FINTRAC, 2025). The phone number was no longer affiliated with Xeltox Enterprises Ltd., and the email addresses were inaccessible and not updated. Additionally, they were operating as Xeltox Enterprises Ltd., but their operating name was Cryptomus and was not updated in the registration (FINTRAC, 2025). Vague and incorrect information leads to a lack of transparency and can raise suspicions. It’s essential to have clear and up-to-date business information to maintain credibility and trust with clients and regulators.
Violation #6
Finally, Xeltox failed to submit transaction reports for amounts over $10,000 (FINTRAC, 2025). FINTRAC noted that Xeltox Enterprises Ltd. failed to report at least 1,518 transactions from July 1, 2024, to July 31, 2024 (FINTRAC, 2025). These transactions met the threshold for large virtual currency transactions. Such reports are crucial for tracking significant transactions and preventing illegal activities. Submitting these reports on time can safeguard you from legal issues.
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