Canada - Penalties for Non-Compliance with PCMLTFA

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

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.