FINTRAC 2008 Annual Report

The 2008 Annual Report of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) highlights that FINTRAC produced 210 case disclosures to law enforcement, Canadian Security Intelligence Service, Canada Revenue Agency, Canada Border Services Agency, Communications Security Establishment Canada and foreign financial intelligence units. One of the 210 cases involved an international criminal gang producing and trafficking methamphetamine. This investigation resulted in charges against 23 individuals. Another case involved a Canadian investigation of mortgage fraud which identified four individuals, one of whom was sentenced to three and half years in prison. (Read the Press Release and the FINTRAC 2008 Annual Report Highlights.)

Risk-Based Approach - Guidance for Legal Professionals

The Financial Action Task Force (FATF) has issued Guidance on the Risk-Based Approach (RBA) to Combating Money Laundering and Terrorist Financing for Legal Professionals. This guidance was developed in close consultation with representatives of the legal and notarial profession. It facilitates a common understanding of what the RBA involves, outlines high-level principles in applying the RBA, and indicates good practice for governments and legal professionals in the design and implementation of an effective RBA.

OSFI issues Draft Guideline B-8 – Deterring and Detecting Money Laundering and Terrorist Financing

The Office of the Superintendent of Financial Institutions Canada (OSFI) has issued Draft Guideline B-8 – Deterring and Detecting Money Laundering and Terrorist Financing. This guideline sets out expectations for federally regulated financial institutions (except for property and casualty insurance companies, cooperative credit associations and fraternal benefit associations) with respect to anti-money laundering and anti-terrorist financing risk management and compliance controls. A Guideline Impact Analysis Statement sets out the background and reasons for revising this Guideline. Institutions are invited to provide comments no later than December 10, 2008 through their industry associations. (The Draft Guideline, Impact Analysis and Accompanying Letter are available at the OSFI website. )

Money Laundering in Canada 2008 Conference

FINTRAC Director Jeanne M. Flemming addressed the delegates at the recent conference on Money Laundering in Canada 2008. Although there are many conferences held around the world that deal with money laundering and terrorist financing, this one is different because it’s Canadian. The focus is on Canadian issues, Canadian laws and Canada’s effort to combat money laundering and terrorist financing. (View the Presentation.)

FINTRAC Web-based seminars

Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) is holding a series of Web-based seminars (webinars) in preparation for the coming into force of obligations for new reporting entity sectors under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). FINTRAC Webinars are free and can be viewed as live presentations on the day they are broadcast or later by linking to the archives. (To participate in an upcoming FINTRAC Webinar, you must register.)

SAR Activity Review – Trends, Tips & Issues

In the United States, the Department of the Treasury oversees the Financial Crimes Enforcement Network (FinCEN). FinCEN publishes the SAR Activity Review – Trends, Tips & Issues as a product of close collaboration between regulatory, law enforcement and industry partners. It is intended to provide meaningful information about the preparation, use and value of Suspicious Activity Reports (SARs) filed by financial institutions.

Intersection of Anti-Money Laundering and Anti-Fraud Efforts

On September 23, 2008, James H. Freis, Director, US Financial Crimes Enforcement Network (FinCEN) addressed the Florida Bankers Association Town Hall Meeting about the Intersection of Anti-Money Laundering and Anti-Fraud Efforts. He noted that "acts of fraud and acts of money laundering are interconnected: the financial gain of the fraudulent activity ultimately needs to be integrated into the financial system. Therefore, money laundering is often a malignant and pernicious product of fraud. By fighting fraud, you are fighting money laundering."

What's new at the FATF?

The Financial Action Task Force (FATF) has issued a report on Money Laundering and Terrorist Financing Vulnerabilities of Commercial Websites and Internet Payment Systems. The report focuses on the type of electronic commerce identified as the most vulnerable to money laundering and terrorist financing: mediated customer-to-customer. These sites allow private individuals to sell to one another via an online marketplace. The report provides a number of case studies illustrating how such sites can be exploited for money laundering / terrorist financing purposes. (Read the current issue of FATF e-news for more information on FATF activities.)

Canada's 2008-2009 Changes to Reporting Entity Obligations

Changes to Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Phase 1 changes of the regulations affect reporting entity obligations (including reporting, record keeping, client identification and implementing a compliance regime). These changes were published in June 2007 and came into effect on June 23, 2008. A second phase of changes was published in December 2007 setting out the requirements for new sectors (British Columbia notaries, legal counsel and legal firms, and dealers in precious metals and stones). They will come into effect December 30, 2008. A third phase of changes was published in February 2008 dealing with new requirements for real estate developers effective February 20, 2009 and additional requirements for casinos effective September 28, 2009. A fourth phase of changes was published in June 2008, mostly about administrative monetary penalties, record keeping and client identification exemptions, and record keeping time frames. The changes affecting administrative monetary penalties will be effective December 30, 2008. The rest are effective June 23, 2008. (Details are available on the FINTRAC website.)

FATF Annual Report 2007-2008

This Annual Report provides an overview of the achievements of the Financial Action Task Force (FATF) for 2007-2008. The most important strategic outcome of the year was the approval by FATF Ministers of a revised mandate. The four principal objectives under this revised mandate are: to establish and maintain global standards and measures for countering money laundering and terrorist financing; to foster and assess the implementation of those standards; to identify money laundering and terrorist financing methods and trends; and, to expand co-operation with stakeholders and partners in order to make the system work effectively and globally. The FATF standards have now been endorsed directly by 180 jurisdictions, representing more than 85% of the world. (Read the FATF Annual Report 2007-2008.)

RBA Guidance for Accountants

This Guidance on the risk-based approach to combating money laundering and terrorist financing was developed by the Financial Action Task Force (FATF) in consultation with the accounting profession. It outlines the high-level principles in applying the risk-based approach and indicates good public and private sector practice in the design and implementation of an effective risk-based approach. (Read RBA Guidance for Accountants.)

Canada's Anti-Money Laundering & Anti-Terrorist Financing Requirements - A Guide for Chartered Accountants

Canada's Anti-Money Laundering & Anti-Terrorist Financing Requirements - A Guide for Chartered Accountants has been prepared to assist in understanding the obligations imposed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The PCMLTFA makes it mandatory for CAs and CA firms that serve as financial intermediaries on behalf of their clients to report on certain financial transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FINTRAC provides a significant amount of guidance in the form of Guidelines and Interpretation Notices that can assist reporting entities in keeping up with new developments that may affect them. FINTRAC also conducts ongoing outreach programs for all reporting entities. Chartered accountants and accounting firms that are subject to the legisation can keep up to date by regularly visiting the FINTRAC website and the CICA’s Online Anti-Money Laundering Resource Centre.

Money Laundering & Terrorist Financing Risk Assessment Strategies

Drawing on current examples of national threat assessments, this FATF report Money Laundering & Terrorist Financing Risk Assessment Strategies sets out key factors to be considered, including sources of data and type of assessment: risk, threat or vulnerability.

Update on Canada's 2008 anti-money laundering requirements for CAs

Significant amendments to Canada’s anti-money laundering (AML) and terrorist financing laws come into effect on June 23, 2008, followed by even more changes later this year. This article highlights some of the more important new AML regulations, particularly those that may have an impact on chartered accountants and accounting firms. It provides an overview of the changing Canadian and international environments, explains how reporting entities will be affected, reviews the risk-based approach for implementing a compliance program and stresses the need to keep up with new developments. (Read the article Update on Canada's 2008 anti-money laundering requirements for CAs.)

Risk-based Approach - FINTRAC webinar for reporting entities

This web-based seminar (webinar) is part of the series of webinars created by FINTRAC to address the changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that come into force on June 23, 2008. (Play this webinar or Read the transcript.)

United Nations - International Money Laundering Information Network

The United Nations International Money Laundering Information Network (IMoLIN) is an Internet-based network assisting governments, organizations and individuals in the fight against money laundering and the financing of terrorism. IMoLIN has been developed with the cooperation of the world's leading anti-money laundering organizations. It includes a database on legislation and regulation throughout the world (including Canada), an electronic library and a calendar of events on anti-money laundering/countering the financing of terrorism.

FATF Revised Mandate 2008-2012

Recently, the UK Chancellor of the Exchequer chaired a meeting of FATF Ministers in Washington DC. The Ministers discussed the work of the FATF in the international fight against money laundering and terrorist financing. They also endorsed a revised mandate for the FATF, which determines its direction and priorities between 2008 and 2012. (Read about the FATF Revised Mandate 2008-2012.)

FATF Terrorist Financing Report

This study was prepared by the Financial Action Task Force (FATF). It examines the means used by terrorists to raise funds and the wide variety of methods used to move money within and between organizations. The adaptability and opportunism shown by terrorist organizations suggests that all the methods that exist to move money around the globe are to some extent at risk. (Read the FATF Terrorist Financing Report.)

FINTRAC Webinars on changes to PCMLTFA

FINTRAC has announced a series of Web-based seminars (webinars) concerning upcoming changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). A separate webcast will be offered exclusively on the subject of the new risk-based approach element and provide guidance on risk assessement, risk mitigation and enhanced due diligence measures. To participate, register at the FINTRAC website.

FINTRAC Presentations

Presentations on new requirements for reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) are now available on FINTRAC’s Web site. These presentations attempt to summarize new requirements under the Act as well as the related Regulations. They are provided as general information only. They are not legal advice and are not intended to replace the Act and Regulations. (View the FINTRAC Presentations.)

Canada Makes Progress in Combatting Money Laundering and Terrorist Financing

The Honourable Jim Flaherty, Minister of Finance, said a report released by the Financial Action Task Force (FATF) shows Canada has made steady progress in combatting money laundering and terrorist financing. A summary of the Mutual Evaluation Report is available now and the full report will be posted in mid-March. (View the Media Release and Report Summary.)

New FINTRAC Guidelines - February 2008

FINTRAC has issued revised Guidelines which include new requirements that will come into force June 23, 2008. The Guidelines address the Implementation of a Compliance Regime and Record Keeping and Client Identification. (View the FINTRAC webpage for more information.)

Minister of Finance Opens Egmont Secretariat Headquarters in Toronto

The Honourable Jim Flaherty, Canada's Minister of Finance, today officially opened the permanent headquarters of the secretariat of the Egmont Group in Toronto. The Egmont Group is an organization of 106 of the world’s financial intelligence units, including the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). (View the News Release.)

Canada Expands Its Anti-Money-Laundering and Anti-Terrorist-Financing Regime

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Stockwell Day, Minister of Public Safety, today announced the publication of final regulations in the Government’s ongoing efforts to make Canada an unwelcome place for money laundering and terrorism financing. Under the new regulations, real estate developers will be required to meet client identification, record-keeping and transaction-reporting requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. In addition, casinos will have to report to the Financial Transactions and Reports Analysis Centre of Canada any large disbursements and keep records in respect of these transactions. The regulations, to be published in the Canada Gazette on February 20, 2008, are necessary steps in bringing the Canadian anti-money-laundering and anti-terrorist-financing regime into line with the revised international standards of the Financial Action Task Force. View the News Release.)

CAs Impacted by Changes to Anti-Money Laundering Rules

This year, tough new anti-money laundering (AML) rules come into effect and Canada’s Chartered Accountants had better beware. If they are involved in any way with the proceeds of crime – even if it was unintentional or they had no idea of what they were doing – the penalties could be severe. Starting June 2008, the country’s AML regulations will be as stringent as those anywhere in the world. (Read the article CAs Impacted by Changes to Anti-Money Laundering Rules.)

FINTRAC Information Sessions

In preparation for the coming into force of new obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, FINTRAC representatives will be holding information sessions across Canada. To sign up for these free sessions, visit the FINTRAC website.

Canada Widens the Net to Prevent Money Laundering

The Government of Canada has released regulations to make it more difficult for criminals to launder money or to finance terrorist activities in Canada. Under the new regulations, the legal profession will be required to meet the client identification and record-keeping requirements called for in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (View the News Release.)