Expert Support and Guidance for Your Team
At Castleview, Anti-Money Laundering is a Core Business Line.
Our Anti-Money Laundering Expertise includes:
- Up-to-date Regulatory Intelligence for Executives
- Custom Design of Compliance Policies and Programs;
- Internal Review of Reporting, Client Identification, and Record Keeping Systems;
- AML Risk Assessments;
- Training AML Teams on compliance policies and programs.
Canada's Legal Regime to Combat Money Laundering is Complicated
Legal Regime
- The Proceeds of Crime (Money Laundering) Act entered into force in 1991 thereby establishing record keeping requirements and client identification requirements.
- The Proceeds of Crime (Money Laundering) Act was amended in 2000 so as to expand the scope of its application and to establish a financial intelligence unit with national control over money laundering, i.e. Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
- In 2001, the Proceeds of Crime (Money Laundering) Act was again expanded and the Act was re-named as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
- In 2006, partly in response to pressure from the Financial Action Task Force (FATF), the Proceeds of Crime (Money Laundering) and Terrorist Financing Act was further amended to strengthen Canada's anti-money laundering regime.
- The 2006 amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act expanded the client identification, record-keeping and reporting requirements for covered organizations as well as certain new obligations.
- Canada's anti-money laundering regime applies to a wide-range of entities that includes: banks, insurance companies, securities brokers, real estate, money services businesses, accountants, jewellers, and casinos.
Organizations Face Extensive, Complicated Requirements
- Understanding and implementing the Reporting Requirements.
- Understanding and implementing the Client Identification requirements.
- Implementing the document retention and record keeping requirements.
- The 2006 amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act did not merely expand the client identification, record-keeping and reporting requirements.
- The Proceeds of Crime (Money Laundering) and Terrorist Financing Act now contains obligations for covered entities to report attempted suspicious transactions and outgoing and incoming international electronic fund transfers, undertake risk assessments and implement written compliance procedures in respect of those risks.
Inadequate Compliance May Have Serious Consequences
FINTRAC and Other Investigations
investigations, searches and compulsory and voluntary information requests:
- Attending on criminal and regulatory searches.
- Regulatory, criminal and civil investigations and inquiries.
- Advice and assistance in relation to production orders.
- Advice and assistance with FINTRAC investigations, inquiries and audits.
- Search and seizure guidelines.
FINTRAC Fines
The compliance officer is a key part of the organization’s compliance program. The compliance officer’s mandate typically involves:
- Oversight of the implementation of the compliance program.
- Oversight of the effectiveness of the compliance program to ensure compliance with the legislation.
- Identification of areas of concern that may present risks to the organization.
- Oversight of the review and audit of the compliance program.
The compliance officer also has a corporate mandate that typically involves:
- Oversight of the implementation of the compliance program.
- Oversight of the effectiveness of the compliance program to ensure compliance with the legislation.
- Identification of areas of concern that may present risks to the organization.
- Oversight of the review and audit of the compliance program.
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Compliance Officers Have Serious Responsibilities
Compliance Policy & Compliance Programs
Reporting entities are required to implement a compliance program to meet reporting, record keeping and client identification obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The compliance program will help ensure that a reporting entity has a compliant culture, and to minimize risks to the reporting entity and its directors, officers and employees of criminal, civil or administrative liability.
Select Components of an AML Compliance Program
- Appointment of a Compliance Officer to manage and oversee the operation of the compliance program.
- Allocation of resources, including staff and financial resources to manage the compliance program.
- Client identification procedures, including the information required, the course of action to be taken when a client refuses to provide information or the client cannot be identified, in accordance with the obligations imposed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
- Procedures to meet reporting requirements, including the designation of responsible employees, FINTRAC submission procedures and record retention.
- Procedures to meet record keeping obligations, including the type of document, who has responsibility for the maintenance of files, confidentiality, the type of information collected and the length of time each record is required to kept.
- Description of the training program and outline of the training program.
- Procedures for the biennial compliance review, including who it will be performed by, what its focus will be, whether it will include an audit and to whom the findings will be reported.
- Procedures setting out how the risk assessment will be conducted, including what areas will be examined, by whom, the methodology used in the assessment, and how the findings will be reported and implemented by the reporting entity.
- Provisions for senior management review and approval of the compliance program.
Compliance Officer
The Act requires reporting entities to appoint a compliance officer. As a compliance officer you are deemed to be responsible for your organization's implementation of an adequate AML compliance program.
A properly resourced compliance officer will also have a corporate mandate that may include:
- Oversight of the implementation of the compliance program.
- Oversight of the effectiveness of the compliance program to ensure compliance with the legislation.
- Identification of areas of concern that may present risks to the organization.
- Oversight of the review and audit of the compliance program.
Compliance Training
A compliance program must include training for employees
The training program must ensure that all employees who have contact with clients, who see client transaction activity, who handle cash or funds in any way, or who are responsible for implementing or overseeing a compliance regime understand the reporting, client identification, and record keeping requirements.
Furthermore, the training program should be set-out in writing and must be maintained. As well, all employees should be periodically informed of any changes in anti-money laundering or anti-terrorism legislation, policies and procedures, as well as current developments and changes in money laundering or terrorist financing schemes particular to their jobs.
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Training Your AML Team Does Not Need to Be Complicated
Compliance Policies & Training
A compliance program must include training for employees to ensure that all those who have contact with clients, who see client transaction activity, who handle cash or funds in any way, or who are responsible for implementing or overseeing a compliance regime understand the reporting, client identification, and record keeping requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
This training program should be specified in writing and must be maintained. As well, all employees should be periodically informed of any changes in anti-money laundering or anti-terrorism legislation, policies and procedures, as well as current developments and changes in money laundering or terrorist financing schemes particular to their jobs.
Diligence and compliance solutions
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