Just for clarification, Chris, do you have dates on when the account was closed, when Emails alerting of the account being closed went out and when this wire was sent? I think a timeline would clarify a lot here.

If I were a sponsor and I was going to be sending you a wire, I would use the steps you outlined each and every time I send the wire out without fail. I have wires I send to suppliers in China and I always make sure to check and recheck that they are still using the same account. For months nothing will be out of the ordinary, but then after 6 to 8 months this same type of situation will arise. I always check.

Seems to me he probably received notices and the information is in his account. Not hard to find it or read it.

My guess is they were asked to leave.
Canadian banks are getting huge regulatory burdens thrown on them
eg: FATCA
OSFI is imposing pretty serious suggestions, and Basel III is enacting much more stringent credit requirements on counterparties.

It also doesn't make sense to deal with a 'shady' organization (regardless of it's legality).
With Canadian banks having so much trouble with the American government, we don't want to piss them off more.... 'Harboring offshore accounts' is a good way to piss them off :D

And yeah, FINTRAC doesn't 'audit'. It holds information, and you have to report activities to it - but that's not auditing.

it seems the issue is sorted out because i am receiving again payments into my paxum account by that company that sent the money to the wrong bank.

thanks all for sorting it out!