Canada

Topic: Money laundering

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FINTRAC amplifies requirements for Suspicious Transaction Reporting

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has recently updated its industry guidance (Revised Guidance) in relation to the filing of suspicious transaction reports (STRs). The Revised Guidance reflects FINTRAC’s increased expectations as to certain key requirements for filing STRs. Reporting entities, including financial entities, are encouraged to revisit their current approach … Continue Reading

Federal budget 2017 financial services highlights

The Government tabled Budget 2017 on March 22.  The financial services proposals are aimed at the following: Greater resiliency for the Canadian financial sector; A modernized deposit insurance framework that continues to protect the deposits of Canadians and promote financial stability; and Strengthened ability for Canada to combat money laundering and terrorist financing. Financial Sector … Continue Reading

The saga of the unnamed bank: FinTRAC issues a statement

In April 2016, Canadian news media reported that the Financial Transactions Reports Analysis Centre (FinTRAC) had levied a penalty of over $1 million against an unnamed Canadian bank for certain violations of its anti-money laundering requirements.  Since then, FinTRAC has continued to face criticism from the public and the media for its decision to withhold … Continue Reading

Financial services regulatory: 7 developments to watch in 2017

Happy 2017! Financial services regulation continued to be busy in Canada in 2016. We have prepared this shortlist of pending changes, developments and consultations to watch as we start 2017. 1.  New draft OSFI guideline: enterprise-wide model risk management OSFI released a new draft Guideline E-23 – Enterprise-Wide Model Risk Management on December 21, 2016. … Continue Reading

FATF Mutual Evaluation of Canada report released

On September 15th, the Financial Action Task Force (FATF) released its Mutual Evaluation Report (Report) of Canada’s measures for combatting anti-money laundering (AML) and the financing of terrorism (CFT).  FATF is an international organization originally formed by the G-7 countries in 1989.  FATF has developed 40 Recommendations for measures that countries should take to combat … Continue Reading

Canadian anti-money laundering regulations updated

On June 29, 2016, the federal Government published the final version of the long-awaited regulations (Amending Regulations) to amend various regulations (Regulations) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The Amending Regulations came into force on June 30, 2016, however, there is an almost one year delay for the provisions … Continue Reading

New FinTRAC Guidance – ID Verification

Since July 2015, when draft amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (Draft Regulations) were published in the Canada Gazette, the industry has been expecting changes to aspects of the current AML/TF regime, particularly with respect to customer identification. After a lengthy delay, caused at least in part by the … Continue Reading

The Curious Case of the FINTRAC Penalty

On April 5th, newspapers in Canada began reporting that the Financial Transactions Reports and Analysis Centre of Canada (FINTRAC) had imposed its first ever penalty on a bank.  FINTRAC is the government agency created by the Proceeds of Crime (Money Laundering) and Terrorist Finance Act (PCMLTFA) to receive reports from banks and other reporting entities … Continue Reading

First Country Assessment of AML and TF Risk Released

On July 31st, the federal Department of Finance released its initial assessment of the inherent money laundering and terrorist financing risks in Canada.  The country assessment responds to a key recommendation of the Financial Action Task Force (FATF), the global standard setter for anti-money laundering and anti-terrorist financing efforts, that countries identify, assess, and understand … Continue Reading

Anti-money laundering: long-awaited regulatory amendments

On July 4, 2015, proposed amendments to various regulations under the Proceeds of Crime (Money Laundering) and
Terrorist Financing Act (PC Act) were published in the Canada Gazette. Some of the key proposed amendments provide for the following: New, less prescriptive methods for verification of identity. These proposed amendments are particularly relevant for entities that transact … Continue Reading

Senate hearings on digital currencies nearing completion

For about a year, the Senate Committee on Banking, Trade and Commerce has been studying the use of digital currencies, including their risks, threats and advantages. The Committee is expected to issue its report sometime this spring. The Committee has received presentations from a wide range of witnesses, including government agencies, digital finance experts, academics … Continue Reading

Regulation of Bitcoin Exchanges

On June 14, 2014, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Act) was amended to expand the definition of a money service business to include “virtual currency dealers”.  However, in order for the amendment to become operative, further regulations are required to provide more specifics about the types of entities that will … Continue Reading

Canada Takes Step Towards Recognizing Virtual Currencies

In the Budget speech last February, the Minister of Finance announced that the Government would introduce anti-money laundering and anti-terrorist financing regulations for virtual currencies such as Bitcoin.  On June 19, 2014, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Act) was amended to bring persons that “deal in virtual currencies” under the … Continue Reading
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