Anti-Money Laundering in the Global Economy

Highlights from FINTRAC’s Annual Report 2011

2012-01-16T09:30:00.006-05:00

FINTRAC is producing more and better financial intelligence than at any time it its past. This year, a record 777 case disclosures were provided to law enforcement, other domestic partners and to foreign financial intelligence units.

Over the last three years, FINTRAC has produced 1,912 disclosures, reflecting a continuing rise in demand for our product. During fiscal 2010-2011, FINTRAC made 777 case disclosures, of which: 626 were related to suspected money laundering; 103 for suspected terrorist activity financing and/or threats to the security of Canada; and 48 were for both suspected money laundering and suspected terrorist activity financing and/or threats to the security of Canada.

FINTRAC's financial intelligence disclosures were provided to a variety of law enforcement and intelligence agencies and other partners:

The RCMP (the primary recipient of our disclosures);
The Canada Revenue Agency;
Municipal police services;
Foreign financial intelligence units;
The Canada Border Services Agency;
The Canadian Security Intelligence Service;
Provincial police services.

(For more information, read the News Release, the Highlights and the FINTRAC Annual Report 2011.)

Consultation to Update Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime

2011-12-30T09:16:00.003-05:00

The Honourable Jim Flaherty, Minister of Finance, has launched a consultation aimed at updating Canada’s regime for combating money laundering and terrorist financing. The consultation paper, “Strengthening Canada’s Anti-Money Laundering and Anti‑Terrorist Financing Regime,” puts forward several proposals that may be considered for future changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The proposals in the paper are organized around the following key areas:

· strengthening client due diligence standards;

· closing gaps in Canada’s regime;

· improving compliance, monitoring and enforcement;

· strengthening information sharing in the regime;

· introducing a list of potential countermeasures; and

· updating reporting requirements.

The paper will also serve to inform the Parliamentary review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act that will be conducted in 2012 by the Standing Senate Committee on Banking, Trade and Commerce. The deadline for comments is March 1, 2012.

Trends in Canadian Suspicious Transaction Reporting (STR) Part II – October 2011

2011-11-23T09:05:00.022-05:00

This report (Trends in Canadian Suspicious Transaction Reporting (STR) Part II – October 2011) is the second in a series of FINTRAC publications that are intended to provide strategic financial intelligence and feedback to reporting entities about suspicious transactions reports (STRs). The first FINTRAC report on Trends in Canadian Suspicious Transaction Reporting, released in May 2011, presented a preliminary analysis of STRs submitted to FINTRAC between 2001 and 2010, using geospatial and text mining techniques. That report was the first FINTRAC attempt to use the text mining technique and served as the foundation to the current more sophisticated methodology.

This Trends and Typologies report on STRs is a continuation of the first one, and consists of an enhanced automated analysis of English and French STRs submitted to FINTRAC from January 1st, 2007 to December 31st, 2010. It provides a greater focus on select topics related to money laundering and terrorist financing that are described by reporting entities in the Part G narrative of STRs. In order to keep providing feedback to reporting entities in relation to STRs and keep highlighting interesting trends as FINTRAC’s text mining capabilities develop in sophistication, it is our intention to keep producing this series of analytical publications.

There are several sections in this report. Part 1 provides a broad overview of the material introduced in the first report and addresses the new methodology used to analyze STRs in the current report. Part 2 describes the trends observed in the Part G narrative of STRs, by specific sector, and contains the report’s main findings. Part 3 provides a brief overview of the dominant themes related to reasons for suspicion in STRs across all sectors. Conclusions are offered in Part 4.

Consultation Paper on Proposed Amendments to the Proceeds Of Crime (Money Laundering) and Terrorist Financing Regulations on Ascertaining Identity

2011-11-16T18:53:00.001-05:00

The Minister of Finance of the Government of Canada is proposing amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (the Regulations) to strengthen the identification and customer due diligence (CDD) provisions of the Regulations. The proposed amendments are intended to assist reporting entities to better identify customers and understand their activities, thereby improving the ability of reporting entities to identify transactions and activities that are at greater risk for money laundering or terrorist financing.

Given that cooperation between the public and private sectors is critical to the success of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime, the Department of Finance would like to invite you to comment on a consultation paper setting out the proposed regulatory amendments.

The consultation paper (Proposed Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations on Ascertaining Identity) is now available on the Department of Finance website (http://www.fin.gc.ca/activty/consult/pcmltfrai-rrpcfatvic-eng.asp).

Global Bribery and Corruption: Impact on Canadian Businesses

2011-10-28T10:56:00.002-04:00

On July 1, 2011, the new Bribery Act 2010 came into effect in the UK, presenting many Canadian commercial organizations with new risks and challenges. The legislation can extend to any company which carries on any part of a business in the UK, regardless of where the company was incorporated. Canadian businesses with a connection to the UK need to carefully consider their existing anti-bribery procedures and whether their controls are up to the task.

To help you keep track of these developments, Deloitte’s advisory team has analyzed the new Bribery Act and has been carefully monitoring Canadian anti-bribery actions. Deloitte offers extensive anti-corruption advisory services helping clients manage bribery and corruption risks, and has been involved in some of the largest and most complex anti-corruption investigations and remediation efforts.

Download the Deloitte report (Global bribery and corruption and the impact on Canadian businesses) to understand the changing nature of anti-bribery legislation and enforcement, and how you can take steps to ensure your business is protected.

Global Anti-bribery and Corruption Survey 2011

2011-10-14T16:07:00.001-04:00

In Canada, managing bribery and corruption risks has not assumed the importance and urgency seen in other jurisdictions. To date, Canada’s Corruption of Foreign Public Officials Act (CFPOA), has received little attention from corporations and enforcement by officials. This is in stark contrast to the situation in the United States where the Foreign Corrupt Practice Act (FCPA) is robustly enforced. However, there have been important developments on the Canadian anti-bribery and corruption (AB&C) front. The new reality for Canadian companies is one of increased AB&C enforcement activity, both at home and abroad.

KPMG Forensic commissioned a survey of 214 executives (106 in the US and 108 in the UK) who consider themselves “one of the most senior persons in charge of day-to-day AB&C matters at their company.” The three most significant AB&C compliance challenges cited by both US and UK respondents are auditing third parties for compliance, difficulty in performing effective due diligence on foreign agents/third parties, and variations in country requirements and local laws on issues, such as data privacy and facilitating payments.

(Read the Global Anti-bribery and Corruption Survey 2011.)

FATF-XXIII Calendar of Events (July 2011 – June 2012)

2011-09-30T09:17:00.006-04:00

The Financial Action Task Force (FATF) year begins in July and ends in June. During this period, the FATF holds three plenary meetings, a meeting of experts on typologies and, depending on the focus of current work, inter-session meetings and meetings of various ad hoc groups. The plenary meetings usually take place in October, February and June of each year.

Most FATF Plenaries take place in the conference facilities of the OECD in Paris. The meeting of experts on typologies takes place in November of each year and is usually now held jointly with an FATF-style regional body in the country chosen by that body. All of these meetings are only open to delegations from FATF members, observer jurisdictions and observer organizations. They are not open to the public.

The FATF Calendar of Events includes the major FATF meetings along with the meetings of other FATF-style regional bodies and some international organizations that also deal with money laundering issues.

Risks and Responses to Organized Crime: Moving Beyond Cash

2011-09-20T16:23:00.000-04:00

(Presentation by Jeanne M. Flemming, Director, Financial Transactions and Reports Analysis Centre of Canada, to the International Symposium on Economic Crime, Cambridge, England, September 7, 2011)

“The world continues to turn, and organized crime continues to mutate. In its 2010 report on organized crime, the Criminal Intelligence Service of Canada noted the changing nature of organized crime in Canada. Traditionally, organized crime was understood as a hierarchical structure comprised of culturally homogeneous groups, citing the examples of Italian, Russian or Albanian mafia. The new reality they describe is one where many organized crime groups are loosely structured, competitive networks with fluid linkages between members and associates, with a diverse range of leadership structures. I can confirm that we are seeing increasing evidence of these fluid structures in our own cases.”

“What is more, organized crime once involved cash-based crimes almost exclusively. As a response, anti-money laundering regimes were developed to combat the illegal profits from the illicit narcotics trade and the organized criminal networks that rose to global prominence three or four decades ago. The infusion of that criminal cash into the financial system was a grave risk that demanded a response. It gave rise to the creation of financial intelligence units, like the one that I head. It also brought regulatory controls and compliance obligations that will be familiar to those of you who work in banking, insurance and securities. In essence, what we have now is a system that was built to address that particular risk. The rules, like the crimes they were meant to address, were largely focused on cash transactions.”

“The question that it begs is: how well does such a system address other risks? In practical terms, can a system of rules intended to keep drug money out of the financial system be effective in addressing the risks posed by offences such as fraud and corruption or any number of other profit motivated crimes loosely grouped under the rubric of “white-collar crime?”

Laundering the Proceeds of Corruption

2011-08-30T09:09:00.006-04:00

The Financial Action Task Force (FATF) has prepared a study, Laundering the Proceeds of Corruption, to show the links between corruption and money laundering. This typology report differs from other such typologies previously produced by the FATF because it draws from publicly available work undertaken by experts. The goal of the project was to better understand corruption, its mechanisms and vulnerabilities, through an AML/CFT lens.

The report identifies key vulnerabilities within the current framework and discusses some of the obstacles to the recovery of corruption. In addition to providing the basis for further examination of related issues, the report will serve as the catalyst for future FATF work in developing guidance or best practices on measures relevant to combating corruption. The FATF will continue to work on issues related to the use of tools in the fight against corruption (also refer to the report on the FATF’s Focus on Corruption).

Stupid fraud tricks

2011-08-12T09:08:00.011-04:00

“It’s not uncommon to glamorize fraudsters. They are often clever, charming and cunning. Their schemes are frequently brilliant and breathtakingly bold. Even the words “con artists” used to describe them bestow a degree of respect and admiration for their accomplishments, immoral and illegal though they may be. Not all fraudsters, however, are deserving of our reluctant praise. In fact, for every Frank Abagnale, the master of fraud and false identity portrayed in the film Catch Me If You Can by actor Leonardo DiCaprio, there are myriad examples of bungling, clumsy and downright stupid fraudsters. In fact, the inept ones are more common than the inspired schemers. Nonetheless, they do evoke a certain response from fraud investigators — comic relief.”

(Read the article “Stupid fraud tricks” in the August 2011 issue of CAmagazine online.)

Money Laundering in Canada

2011-07-29T12:22:00.002-04:00

Some authorities, including the Royal Canadian Mounted Police (RCMP), have found that money laundering is often related to organized criminal and/or terrorist activity. In recent years, the issue of money laundering has been highlighted as an emerging problem both in Canada and internationally. In Canada, it is estimated that the amount of money laundered on an annual basis is somewhere between $5 and $15 billion. Worldwide, it has been estimated that this figure may be $900 billion to $2.25 trillion (RCMP – Money Laundering, 2011).

According to the Criminal Code, money laundering, also referred to as laundering proceeds of crime, occurs when an individual or group uses, transfers, sends, delivers, transports, transmits, alters, disposes of or otherwise deals with, any property or proceeds of any property that was obtained as a result of criminal activity. This is done with the intent to conceal or convert illegal assets into legitimate funds.

An example of money laundering would involve a person who sells illegal drugs, and then uses the profit to purchase legal goods to sell through a legitimate business. Previous research suggests that money laundering schemes are often associated with the illegal drug trade or the defrauding and manipulation of Canada’s financial institutions.

(To learn more, see the Statistics Canada website and the June 2011 publication Money laundering in Canada, 2009.)

Money Laundering and Terrorist Activity Financing Watch

2011-07-15T21:05:00.000-04:00

The Money Laundering and Terrorist Activity Financing Watch presents a quarterly review of news articles summarizing relevant group-based, activity-based and country-based money laundering and terrorist activity financing issues, and alerts readers to new financial mechanisms or technologies that could possibly be exploited for money laundering or terrorist activity financing purposes in Canada. (Caveat: The content is a summary of news articles and does not include any FINTRAC analysis. The views expressed are those of the authors. FINTRAC is not responsible for the accuracy, currency or the reliability of the content. References are provided to the respective articles at the end of this document.)

Read: Money Laundering and Terrorist Activity Financing Watch:January-March 2011

History of the FATF (1990-2010)

2011-06-29T15:01:00.000-04:00

In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989. Recognizing the threat posed to the banking system and to financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force from the G-7 member States, the European Commission and eight other countries.

The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering. In April 1990, less than one year after its creation, the FATF issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.

In 2001, the development of standards in the fight against terrorist financing was added to the mission of the FATF. In October 2001 the FATF issued the Eight Special Recommendations to deal with the issue of terrorist financing. The continued evolution of money laundering techniques led the FATF to revise the FATF standards comprehensively in June 2003. In October 2004 the FATF published a Ninth Special Recommendation, further strengthening the agreed international standards for combating money laundering and terrorist financing - the 40+9 Recommendations.

To learn more, read the publication 20 Years of the FATF Recommendations 1990-2010.

FATF's Focus on Corruption

2011-06-15T09:01:00.004-04:00

The Financial Action Task Force (FATF) attaches a great importance to the fight against corruption: corruption has the potential to bring catastrophic harm to economic development, the fight against organized crime, and respect for the law and effective governance. The G20 called upon the FATF to address the problem of corruption in the framework of its work on combating money laundering and terrorist financing. Corruption and money laundering are linked. Corruption offences, such as bribery or theft of public funds, are generally committed for the purpose of obtaining private gain. Money laundering is the process of concealing illicit gains that were generated from criminal activity. The FATF Recommendations were designed to combat money laundering and terrorist financing, but when effectively implemented they can also help combat corruption, by:

· safeguarding the integrity of the public sector;

· protecting designated private sector institutions from abuse;

· increasing transparency of the financial system;

· facilitating the detection, investigation and prosecution of corruption and money laundering, and the recovery of stolen assets.

Reference Guide and Information note on the use of the FATF Recommendations to support the fight against Corruption – This information note sets out why compliance with the FATF Recommendations creates an environment in which it is more difficult for corruption to thrive undetected and unpunished.

Money laundering involves more than just cash transactions

2011-05-27T09:05:00.004-04:00

Banks and other financial institutions required to report to FINTRAC need more sophistication and variety in their reporting of suspicious transactions, FINTRAC Director Jeanne Flemming recently told an anti-money laundering conference. “...on the issue of communications, what struck me when I took over as Director was how little we showed reporting entities why effective reporting was crucial to our output of high-quality intelligence and therefore to the police who undertake investigations and the Crown prosecutors who take cases to court.”

“We told them but we didn't show them. There is a big difference and it is why I wanted us to conduct workshops to bring together compliance officers, police and prosecutors with us to show just how we analyze and disclose intelligence and what happens to it. In other words, show how good reporting is a crucial factor in a continuum that finally ends with convictions of criminals. We held two workshops, in Toronto and Montreal, in the last two years. We were pleasantly surprised at the positive feedback we received.”

(See the Keynote Address by Director Jeanne M. Flemming, Financial Transactions and Reports Analysis Centre of Canada to the Canadian Institute's Annual Anti-Money Laundering Forum –Toronto. May 10, 2011.)

Trends in Canadian Suspicious Transaction Reporting

2011-05-16T09:01:00.010-04:00

Trends in Canadian Suspicious Transaction Reporting represents an ambitious undertaking—the first time FINTRAC has made an in-depth analysis of 300,000 suspicious transaction reports (STRs) received over the last ten years from across the country. STRs provide valuable information allowing FINTRAC to assist partners in their investigations of money laundering (ML), terrorist financing (TF), and other threats to the security of Canada. They also feed into strategic intelligence which informs various stakeholders about current and emerging ML/TF trends and patterns, as well as support high-level policy decisions. Since new compliance obligations came into force in 2008, reporting entities are required to expend more effort in identifying their highest ML and TF risks. The purpose of FINTRAC Typologies and Trends Reports is to provide strategic financial intelligence feedback to help reporting entities conform to these new obligations.

Review of the FATF Standards

2011-04-29T10:44:00.000-04:00

The Financial Action Task Force (FATF) develops and promotes global standards for combating money laundering and terrorist financing, which are set out in the FATF 40 Recommendations and the 9 Special Recommendations on Terrorist Financing. Now at the end of its 3rd Round of Mutual Evaluations, the FATF is conducting a review of the 40+9 Recommendations to ensure that they remain up-to-date and relevant and to benefit from lessons learned from implementing and evaluating the current standards. The current review is a focused and balanced exercise, aiming at maintaining the necessary stability in the standards while addressing any deficiencies or loopholes.

Between October 2010 and January 2011, the FATF undertook a public consultation on the first phase of its Review of the FATF Standards. The responses received were published on the FATF website in February 2011. In summary, 51 written submissions were received from representatives of the financial sector (available as Part 1 and Part 2); 18 from representatives of the non-financial businesses and professions; and 6 from other respondents, including non-governmental organisations.

The FATF has begun to consider the issues raised during the initial consultation. In particular, it continues to review certain aspects of the proposals relating to the risk-based approach, customer due diligence, wire transfers and politically exposed persons, taking into account comments received during the consultation process.

Royalty fraud

2011-04-15T11:03:00.000-04:00

Certain industries are more susceptible to royalty fraud, but investigating and proving it is a challenging process. Whether a client wants to call it a fraud investigation or just a review, the key to this kind of assignment is to know how payments are supposed to be recorded and every possible trick or mistake that can result in underpayments. In other words, give every file the royal treatment. Read the article “Royal Treatment” in CAmagazine online.

A steep price - taking bribery more seriously

2011-03-31T21:42:00.000-04:00

With the OECD pressuring Canada to get tougher on improper payments, days of bribes to foreign public officials may be over. While it seems apparent that countries such as Canada and the UK are finally following the US’s lead and taking bribery more seriously, this comes at a time when companies that are affected by the legislation may not be ready. A survey of UK companies released by Grant Thornton LLP in June 2010 found that more than three-quarters of companies surveyed have not invested in anticorruption strategies to deal with the Bribery Act, leaving many UK companies at unnecessary risk of the act’s harsh penalties. In addition, results “from a recent survey performed by a global business consulting firm discovered that only 50% of senior corporate executives are ‘highly confident’ that their business control systems are managing their organizations’ business risks effectively,’ ” says William Olsen, a principal of Grant Thornton LLP in the US and author of The Anti-Corruption Handbook: How to Protect Your Business in the Global Marketplace. The survey also showed that fewer than 10% rated their control systems “excellent” in providing early warning signs to catastrophic risk. (Read the full article called "A steep price" in CAmagazine online.)

FINTRAC Presentations and Speeches - March 8, 2011

2011-03-09T09:38:00.000-05:00

With the recent adoption of Bill C-9, FINTRAC is now permitted to use tax evasion as a predicate offence from which to build a case disclosure. The Criminal Code regulations were amended to make tax evasion a predicate offence to money laundering when determining whether to send a case to the Canada Revenue Agency (CRA). But equally important, pursuant to the coming into force of the regulations to the Bill, the threshold for disclosing information to CRA was lowered from "determining" to "reasonable grounds to suspect" that the information being disclosed is relevant to tax evasion. Read the full text of Notes for remarks by Denis Meunier, Assistant Director, Financial Analysis and Disclosures Directorate, before the House of Commons Finance Committee (Ottawa, March 8, 2011).

Insolvency Practitioners Providing Trustee in Bankruptcy Services

2011-02-24T09:00:00.003-05:00

FINTRAC Interpretation Notice No. 7 - Insolvency Practitioners Providing Trustee in Bankruptcy Services (paragraph 5(j) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and subsections 34(1), sections 35 and 36 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations). The purpose of this notice is to clarify the application of the PCMLTFA relating to insolvency practitioners offering bankruptcy services. Insolvency practitioners provide trustee in bankruptcy services. These services are not triggering activities for any obligations under the PCMLTFA. Trustee in bankruptcy services or insolvency practitioners are not covered as services or as an entity under thislegislation. However, if you are an insolvency practitioner and you are an accountant or an accounting firm, you may have obligations relating to other activities.

FINTRAC ANNUAL REPORT 2010 - Ten Years of Connecting the Money to the Crime

2011-02-18T15:36:00.004-05:00

During 2010, FINTRAC, as Canada’s financial intelligence unit, celebrated its tenth anniversary. (Refer to the publication FINTRAC ANNUAL REPORT 2010 - Ten Years of Connecting the Money to the Crime.)

FINTRAC made 579 (up from 556 in 2008-09) disclosures of information suspected to be relevant to investigations of money laundering, terrorist financing, and/or threats to the security of Canada. Turnaround time on cases improved 17%, and requests for assistance went up 36%. By using electronic media for case disclosures, it sharply reduced delivery times, and provided a more flexible product for law enforcement and intelligence partners to work with.

FINTRAC published a new series of strategic intelligence assessments focusing on terrorist groups and countries arousing national security concerns, as well as reports informing partners about current and emerging typologies and trends in money laundering and terrorist financing. It was also the Canadian lead for the FATF typology project about the use of new payment methods for money laundering purposes.

The Office of the Privacy Commissioner (OPC) issued a report praising the Centre's management of personal information, and recommended the appointment of a Chief Privacy Officer. FINTRAC was pleased to implement this and other OPC recommendations.

(See Highlights from FINTRAC's 2010 Annual Report.)

Egmont AML/CFT Awareness Video

2011-01-21T09:00:00.006-05:00

The Egmont Group of Financial Intelligence Units has released a short animated video to advance awareness and understanding of money laundering and terrorist activity financing. The Egmont AML/CFT Awareness Video is available in English, French and Spanish versions. For more information, read the Egmont News Release online.

Prepaid cards can be fenced for up to 80% of their value

2011-01-13T12:05:00.001-05:00

Drug traffickers, terrorists and other criminals have found a simple and ingenious way to launder their dirty money. Prepaid cards, especially gift cards, can be fenced for up to 80% of their value, according to Canada's FINTRAC. Popular sites such as eBay, Craigslist and various card-exchange sites have made “e-fencing” an incredibly easy way to launder dirty money for about a 20% cost, much less than what traditional, human fences would charge. FINTRAC cites one ring of thieves who were caught in Florida in 2007 after buying US$24,000 worth of gift cards from one Wal-Mart and US$18,000 from another Wal-Mart. FINTRAC also reports that British experts allege that prepaid cards have been used to move terrorist funds around the world and finance terrorist attacks. (Read the article "Card Tricks" in the January-February 2011 edition of CAmagazine, also available online.)

AML/ATF Regime On-line Survey

2010-06-15T08:50:00.001-04:00

To assist in the 10 Year Evaluation of Canada’s Anti- Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime, FINTRAC is requesting input from key stakeholders on the AML/ATF Regime through the use of an on-line survey.

Address (English): short.capra.net/amlatf-en
Username: participant
Password: jRQ?67B

FINTRAC Director discusses anti-money laundering / anti-terrorist financing measures in federal budget

2010-04-30T10:02:00.000-04:00

At presentations to the OSFI (Office of the Superintendent of Financial Institutions) conference and the Canadian Institute Anti-Money Laundering Conference in April 2010, Jeanne M. Flemming, the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) discussed three anti-money laundering / anti-terrorist financing measures which were announced by the Minister of Finance in the recent federal budget.

The three measures are:
• an increase in FINTRAC’s operating budget,
• amendment to regulations under the Criminal Code to make tax evasion a predicate offence for money laundering, and
• amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act giving new authority to the Minister of Finance to issue directives to advise the financial sector of foreign jurisdictions and entities that pose a money laundering or terrorist financing risk, and to require appropriate countermeasures.

The full text of the speeches is available here and here.

Money Laundering and Terrorist Financing Typologies and Trends in Canadian Casinos

2010-02-25T11:35:00.000-05:00

The Financial Transactions and Reports Analysis Centre of Canada has published the following report on its Web site: Money Laundering and Terrorist Financing Typologies and Trends in Canadian Casinos.

Amendments to U.S. Bank Secrecy Act to assist anti-money laundering efforts

2010-02-16T08:07:00.000-05:00

On February 5, 2010, the Financial Crimes Enforcement Network (FinCEN) issued a final rule to amend the relevant Bank Secrecy Act information sharing rules to allow certain foreign law enforcement agencies, and State and local law enforcement agencies, to submit requests for information to financial institutions. The rule also clarifies that FinCEN itself, on its own behalf and on behalf of other appropriate components of the Department of the Treasury (“Treasury”), may submit such requests.

Modification of the information sharing rules is a part of Treasury’s continuing effort to increase the efficiency and effectiveness of its anti-money laundering and counter-terrorist financing policies.

Senate Subcommittee Report Exposes Money Laundering by PEPs

2010-02-16T08:06:00.000-05:00

A report released on February 4, 2010 by Senator Carl Levin at a hearing of the Senate’s Permanent Subcommittee on Investigations exposes how corrupt foreign officials and their relatives have used gaps in U.S. law and the assistance of U.S. professionals to funnel millions of dollars in illicit money into the United States.
The report details how politically exposed persons have used the services of U.S. lawyers, lobbyists, real estate and escrow agents, and other professionals who currently have no obligation under U.S. regulations to establish anti-money laundering (“AML”) programs, know their customers, or evaluate the source of funds transferred into the United States.
The report presents four case histories, each with multiple stories exposing the tactics being used by PEPs to use the US financial system to protect and enhance their illicit funds.

FinCEN Mid-Year Numbers for 2009 Indicate Shifting Suspicious Activity

2010-01-29T15:44:00.000-05:00

On January 22, 2010 the Financial Crimes Enforcement Network (FinCEN) released its latest edition of The SAR Activity Review - By the Numbers, which covers Suspicious Activity Report (SAR) filings for the first six months of 2009. Activities involving suspected check fraud, including traveler's checks and counterfeit checks show significant increases.

FINTRAC issues administrative monetary penalties against two entities

2010-01-29T15:42:00.000-05:00

In December 2009, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) assessed administrative monetary penalties against two money services businesses for violating the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA).

FINTRAC’s Annual Report highlights efforts to follow the money trail

2010-01-29T15:40:00.000-05:00

On November 17, 2009 The Minister of Finance tabled Parliament the 2008-09 Annual Report of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The report highlights that FINTRAC provided 556 case disclosures to law enforcement, the Canadian Security Intelligence Service, the Canada Revenue Agency, the Canada Border Services Agency, the Communications Security Establishment Canada and to foreign financial intelligence units.

Audits of major national security programs raise concerns for privacy

2009-11-24T07:57:00.000-05:00

OTTAWA, November 17, 2009 — The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has more personal information in its database than it needs, uses or has the legislative authority to receive.

This was one of the key findings of the Privacy Commissioner of Canada’s in-depth audit of the independent agency mandated to analyze financial transactions and identify suspected money laundering and terrorist financing in Canada.

Money Laundering and Terrorist Financing in the Securities Sector

2009-10-27T11:32:00.000-04:00

The securities sector is one of the core industries through which persons and entities can access the financial system, providing opportunities for criminals to misuse the financial system.
This FATF study describes (i) how criminals might be able to use securities firms to launder money and finance terrorism and (ii) how illicit funds can be generated through fraudulent activities.

Risk-based Approach: Guidance for the Life Insurance Sector

2009-10-26T08:51:00.002-04:00

The FATF has agreed to the guidance paper for the life insurance sector on applying a risk-based approach to combating money laundering and terrorist financing.
The risk-based approach guidance is the result of a joint FATF-private sector project to develop a series of sector-specific guidance papers.

FINTRAC issues administrative monetary penalties against two entities

2009-08-24T08:27:00.000-04:00

The Financial Transactions and Reports Analysis Centre of Canada has assessed administrative monetary penalties against two entities. The penalties were imposed for violations of the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA).

FINTRAC has had the authority to issue administrative monetary penalties in response to non-compliance with the PCMLTFA and related regulations since December 30, 2008. Penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted. This is the first time that FINTRAC has used this authority to assess such penalties.

FinCEN Seeks Comments on AML Plan for Non-Bank Mortgage Lenders and Originators

2009-08-06T09:23:00.002-04:00

On July 15, 2009 the U.S. Financial Crimes Enforcement Network (FinCEN) issued an advance notice of proposed rulemaking (ANPRM) to solicit public comment on a wide range of questions pertaining to the possible application of anti-money laundering (AML) program and suspicious activity report (SAR) regulations to non-bank residential mortgage lenders and originators.
In FinCEN’s recently issued mortgage fraud reports, SAR analysis showed non-bank mortgage lenders and originators initiated many of the mortgages that were associated with SAR filings.
Written comments on the ANPRM must be received on or before August 20, 2009.

Change to FINTRAC’s Electronic Funds Transfer Requirements

2009-08-06T09:23:00.001-04:00

A change to the requirements relating to electronic funds transfers (ETFs) came into effect on June 23, 2009. These requirements apply to financial entities, money services businesses and casinos.
Outgoing EFTs sent within Canada, including SWIFT MT 103 messages, must include originator information. This means the name, address, account number and reference number (if applicable). In the case of the incoming EFTs, reasonable measures are required to ensure that the EFT includes the originator information. Previously, this requirement was conditional on the EFT network having the capability to include originator information. Effective June 23, 2009, this condition no longer applies.
For more information, see Guideline 6 for financial entities, money services businesses, or casinos.

Freezing of Terrorist Assets: FATF Releases New Best Practices

2009-08-06T09:22:00.001-04:00

The Financial Action Task Force has issued best practices to assist countries with their implementation of measures to freeze terrorist-related funds or other assets without delay pursuant to relevant United Nations Security Council Resolutions and in accordance with the FATF Standards. These best practices will help countries to develop and implement targeted financial sanctions to prevent and suppress terrorist financing. This document replaces the International Best Practice – Freezing of terrorist assets issued in 2003.

About FINTRAC publications

2009-06-11T13:01:00.002-04:00

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has prepared a number of industry-specific information sheets that are designed to provide reporting entities with relevant information needed to file a report. This includes information on record keeping, requirements of identification, measures that must be taken to determine whether an individual is acting on behalf of a third party, and what must be included in a compliance regime. (Download and review all of FINTRAC's publications.)

About mortgage loan fraud

2009-06-11T12:35:00.003-04:00

According to the US Financial Crimes Enforcement Network (FinCEN), Remarks of Director Freis before the Mortgage Bankers Association of America, mortgage fraud is "an insidious crime that has robbed many homeowners of not just the roof over their head, but often of their savings and their security. What draws many of you here today is to guard against instances when mortgage fraud is perpetrated for profit; such criminal profit is meant to be at the expense of you and the institutions you represent. Mortgage fraud is also tied to other serious crimes: identity theft, money laundering and others. But together we must fight this crime by using all the tools at our disposal and by coordinating our activities with law enforcement." (Read the report on Mortgage Loan Fraud Connections with Other Financial Crime.)

FinCEN Releases 15th Issue of The SAR Activity Review – Trends, Tips & Issues

2009-05-13T10:38:00.002-04:00

The United States Financial Crimes Enforcement Network (FinCEN) has published Issue 15 of The SAR Activity Review – Trends, Tips & Issues (May 2009). The SAR Activity Review Index is now available on the FinCEN website. Topics are indexed alphabetically by subject matter. The Archive of Law Enforcement Cases published in The SAR Activity Review can also be accessed through the website.

FINTRAC presentation on April 20, 2009

2009-05-06T09:26:00.005-04:00

On April 20, 2009, Jeanne M. Flemming, Director of Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) gave a presentation at the third annual managing internal and regulatory investigations conference held at the Osgoode Hall Law School in Toronto. She stated that money laundering has consequences for Canadian society because it allows criminal activity to expand and continue. As the criminals gain resources and power, the institutions of Canadian society - those that preserve law, order and good government - can suffer. We all have a stake in upholding the system's integrity and ensuring that dirty money stays out. (Read the Notes for the Presentation.)

FATF Report on Vulnerabilities of Casinos and Gaming Sector

2009-04-20T11:36:00.000-04:00

The vulnerability of casinos was recognised in the revision of the FATF 40 Recommendations, with obligations on casinos being significantly enhanced. A recent report issued by the Financial Action Task Force (FATF) identifies current regional or global money laundering and terrorist financing threats on casinos and gaming. (Read the Vulnerabilities of Casinos and Gaming Sector Report.)

FinCEN Transfers All MSB Information to FinCEN.gov

2009-04-20T11:17:00.002-04:00

The United States Financial Crimes Enforcement Network (FinCEN) has transferred all resources for money services businesses (MSBs) to the "financial institutions" section of its website. MSBs now will find all Bank Secrecy Act (BSA) information related to their industry in one place on www.fincen.gov. This change consolidates information for all industries subject to BSA reporting and recordkeeping requirements to a single website, and furthers FinCEN’s efforts to carry out its administration of the BSA in the most efficient and effective manner possible.

FINTRAC develops e-learning module on terrorist financing

2009-04-13T10:55:00.003-04:00

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has developed an e-learning module that focuses on terrorist financing. By using this new product, reporting entities with obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act may be able to enhance their internal money laundering and terrorist financing risk assessment processes and facilitate employee training, both of which are essential elements of a compliance regime. (Access the Terrorist Financing E-learning Module.)

Key outcomes of the FATF XX Plenary

2009-03-29T11:46:00.002-04:00

The Financial Action Task Force (FATF) has published the key outcomes of the FATF XX Plenary which took place in Paris from February 23-27, 2009. To protect the international financial system from abuse, the FATF has agreed to:

Issue a Statement calling on its members and urging all jurisdictions to apply effective counter-measures to protect their financial sectors from the money laundering and terrorist financing risks emanating from Iran. The FATF also updated its previous Statement on the money laundering and terrorist financing risks emanating from Uzbekistan, Turkmenistan, Pakistan and São Tomé and Príncipe.
Adopt an in-depth evaluation of the anti-money laundering and counter terrorist-financing system in South Africa.
Publish a detailed study on the money laundering and terrorist financing vulnerabilities in the casinos and gaming sector.
Analyse the impact of the global financial and economic crisis on efforts to combat money laundering and terrorist financing.

(Read the Chairman's Summary, Paris Plenary, 25-27 February 2009.)

AUSTRAC and FINTRAC sign agreement to share compliance information

2009-03-29T11:33:00.002-04:00

The Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) have signed a memorandum of understanding (MOU) to share compliance information regarding the legislative obligations that exist for numerous individuals and entities in both countries. The agreement was signed during meetings of the Egmont Group of Financial Intelligence Units, held in Guatemala City, Guatemala. (Read the FINTRAC Media Release.)

FAFT - Mutual Evaluation of Mexico

2009-01-19T13:58:00.002-05:00

The Financial Action Task Force (FATF), the Financial Action Task Force on Money Laundering in South America and the International Monetary Fund have jointly conducted an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in Mexico. Mexico is the twenty-third jurisdiction to be examined in the FATF’s third round of mutual evaluations of its members. The report on the Mutual Evaluation of Mexico is available on the FATF website.

Canada - Penalties for Non-Compliance with PCMLTFA

2009-01-19T13:41:00.004-05:00

Non-compliance with Part 1 of Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) may result in criminal or administrative penalties. When there is extensive non-compliance or little expectation of future compliance, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) may disclose the non-compliance to law enforcement. As of December 30, 2008, FINTRAC also has legislative authority to issue administrative monetary penalties (AMP) to reporting entities that are in non-compliance. A list of violations is available on the Justice Canada Website. For more information on administrative monetary penalties, consult FINTRAC's Frequently Asked Questions.

FINTRAC 2008 Annual Report

2008-12-05T10:50:00.001-05:00

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

2008-11-21T09:03:00.002-05:00

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

2008-11-10T13:54:00.003-05:00

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

2008-10-23T11:59:00.003-04:00

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

2008-10-23T11:51:00.003-04:00

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

2008-10-23T11:43:00.003-04:00

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

2008-09-26T14:03:00.002-04:00

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?

2008-09-18T09:04:00.002-04:00

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

2008-08-06T19:52:00.004-04:00

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

2008-08-06T19:15:00.003-04:00

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

2008-08-06T19:06:00.002-04:00

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

2008-07-31T22:07:00.004-04:00

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

2008-07-15T12:16:00.001-04:00

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

2008-06-23T21:03:00.002-04:00

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

2008-06-23T20:51:00.002-04:00

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

2008-05-20T13:51:00.004-04:00

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

2008-05-13T16:28:00.002-04:00

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

2008-05-13T16:24:00.003-04:00

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

2008-04-21T09:09:00.002-04:00

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

2008-04-15T12:17:00.002-04:00

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

2008-03-03T11:51:00.003-05:00

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

2008-02-22T14:59:00.003-05:00

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

2008-02-15T12:25:00.001-05:00

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

2008-02-15T08:15:00.002-05:00

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

2008-01-28T09:43:00.000-05:00

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

2008-01-21T12:29:00.000-05:00

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

2008-01-21T11:13:00.000-05:00

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.)

Global Economic Crime Survey 2007

2007-12-13T12:40:00.000-05:00

Despite heightened efforts at regulation, fraud remains a major threat to companies around the world. From simple theft to more complex schemes involving management and corruption, the threat continues regardless of a company’s size, location or industry. For over eight years of data on trends, perceptions and incidents of fraud, read the Global Economic Crime Survey 2007 by PricewaterhouseCoopers LLP.

AML Perspectives – United Kingdom

2007-12-06T15:49:00.002-05:00

The Financial Action Task Force (FATF) completed an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in the United Kingdom (UK) in July 2007 (see Mutual Evaluation of the UK). Additional guidance is available from the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the public accounting firm PricewaterhouseCoopers LLP.

AML Perspectives – United States

2007-12-06T15:49:00.001-05:00

The Financial Action Task Force (FATF) completed an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in the United States (US) in June 2006 (see Mutual Evaluation of the US). Additional information and guidance is available from the Securities and Exchange Commission (SEC), the public accounting firm PricewaterhouseCoopers LLP and the March 2007 article Suspicious Activity Reporting: Regulatory Change and the Role of Accountants.

AML Perspectives – Australia

2007-12-06T15:48:00.000-05:00

The Financial Action Task Force (FATF) completed an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in Australia in October 2005 (see Mutual Evaluation of Australia). Additional information and guidance is available from the Institute of Chartered Accountants in Australia (ICAA), as well as the public accounting firm PricewaterhouseCoopers LLP.

Sanitized Money Laundering Cases

2007-11-21T16:56:00.000-05:00

To show how complex and tangled money laundering schemes can be, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has prepared a link chart of a money laundering case, with details changed or deleted for security and privacy reasons. The Egmont Group has also prepared a Library of Sanitized Cases, including a compilation of 100 sanitized cases on successes and learning moments in the fight against money laundering. (See How FINTRAC Builds a Case and Egmont Group – 100 Cases.)

About financial intelligence units

2007-11-16T12:33:00.000-05:00

The Egmont Group is the coordinating body for the international group of financial intelligence units (FIUs). It was formed in 1995 to promote and enhance international cooperation in anti-money laundering and counter-terrorist financing. The Group, with a membership that has grown to more than one hundred FIUs, has recently taken an important step in establishing a new permanent Secretariat located in Toronto, Canada. (View the Egmont Group Financial Intelligence Units of the World.)

FATF - Money Laundering FAQ

2007-11-05T09:57:00.000-05:00

How does fighting money laundering help fight crime? In law enforcement investigations into organized criminal activity, it is often the connections made through financial transaction records that allow hidden assets to be located and that establish the identity of the criminals and the criminal organization responsible. When criminal funds are derived from robbery, extortion, embezzlement or fraud, a money laundering investigation is frequently the only way to locate the stolen funds and restore them to the victims. Most importantly, however, targeting the money laundering aspect of criminal activity and depriving the criminal of his ill-gotten gains means hitting him where he is vulnerable. Without a usable profit, the criminal activity will not continue. (Read Money Laundering FAQ)

FINTRAC Annual Report 2007

2007-11-05T09:45:00.000-05:00

The Honourable Jim Flaherty, Minister of Finance, tabled in Parliament the 2007 Annual Report of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The report highlights that the number of case disclosures FINTRAC issued this year rose by 15 per cent to 193. FINTRAC disclosures contain financial intelligence the Centre suspects would be relevant to investigations of money laundering, terrorist activity financing or other threats to the security of Canada.

FATF mutual evaluation process

2007-10-09T20:45:00.000-04:00

The mutual evaluation process represents a central pillar of the work of the Financial Action Task Force (FATF). The evaluations are based on the Forty Recommendations 2003 and the Nine Special Recommendations 2001 and use the Anti-Money Laundering/Combating Terrorist Financing (AML/CFT) Methodology 2004. The scope of these evaluations is to assess whether the necessary laws, regulations or other measures required under the new standards are in force, that there has been a full and proper implementation of all necessary measures and that the system in place is effective. (Review the Mutual Evaluation Process and Reports.)

AML Guidance on the Risk-Based Approach

2007-10-09T20:40:00.000-04:00

The Guidance on the Risk-Based Approach to combating Money Laundering and Terrorist Financing was developed by the FATF in close consultation with representatives of the international banking and securities sectors. The Guidance supports the development of a common understanding of what the risk-based approach involves, outlines the high-level principles involved 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. (Download the Guidance.)

What's new at the FATF?

2007-09-21T10:54:00.000-04:00

During 2006-2007, the Financial Action Task Force (FATF) explored a number of money laundering and terrorist financing methods and techniques, producing six studies on key areas: trade-based money laundering; new payment methods; misuse of corporate vehicles; money laundering associated with VAT carousel fraud; laundering the proceeds of illegal narcotics trafficking; and money laundering and terrorist financing through the real estate sector. The challenge going forward will be to build upon the work under the Canadian Presidency, to deliver on existing FATF commitments and to complete the mid-term review of the FATF mandate. (View the FATF Annual Report for 2006-2007 and the current issue of FATF e-news.)

Reporting Entity Obligations in Canada

2007-09-05T09:01:00.000-04:00

Changes to Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its associated Regulations will affect reporting entity obligations, including reporting, record keeping, client identification and implementing a compliance regime. The changes have been finalized and the related Regulations have been published. Most of the changes will come into effect on June 23, 2008. Get more information about how changes will affect each reporting entity sector.

Setting global AML standards

2007-08-27T08:52:00.000-04:00

The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. Created in 1989, the FATF works to generate the necessary political will to bring about legislative and regulatory reforms in these areas. The FATF has published 40 + 9 Recommendations in order to meet this objective.

Canada’s Anti-Money Laundering & Anti-Terrorist Financing Requirements

2007-08-23T12:24:00.000-04:00

To assist in understanding the obligations imposed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Canadian Institute of Chartered Accountants (CICA) published Canada’s Anti-Money Laundering & Anti-Terrorist Financing Requirements – A Guide for Chartered Accountants. The PCMLTFA makes it mandatory for financial intermediaries to report on certain financial transactions to an independent anti-money laundering agency called the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This mandatory reporting scheme assists in the detection and deterrence of money laundering and facilitates the investigation of money laundering and terrorist financing activities.

Serving the Public Interest

2007-08-21T09:18:00.000-04:00

The Canadian Institute of Chartered Accountants (CICA) serves the public interest. It is a mandate that has defined the CA profession for over 100 years. In this regard, the CICA has been a strong supporter of the Canadian government’s anti-money laundering and anti-terrorist financing regime (AML) since it began in the mid 1990s. A significant amount of guidance on AML matters is provided on the CICA website to assist CAs in meeting their obligations under Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Purpose of this BLOG

2007-08-20T08:42:00.000-04:00

The purpose of this BLOG is to provide a focal point for disseminating information on research and guidance materials that facilitate anti-money laundering (AML) and anti-terrorist financing (ATF) in the global economy.