FINTRAC issues administrative monetary penalties against two entities

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

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

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

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

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

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

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.