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.)