Canadian financial institutions will soon need to amend how they identify clients with political ties and assess risks associated with new technologies, under regulatory proposals by the Department of Finance. The regulatory package would require banks to determine whether a client is a domestic political figure, head of an international group or an associated individual during account openings or, if the customer isn't an accountholder, when a risky lump-sum payment is requested. The proposal would also task banks with periodically determining whether clients are foreign politicos. Under the plan, compliance officers would have 30 days, instead of the currently allotted...
Recent amendments to Canada's anti-money laundering rules will require banks to more closely monitor the account activity of high-risk domestic politicians and implement new customer identification policies by next year.
Although Canadian financial institutions have collectively invested millions of dollars to shield themselves from bad actors, little evidence exists that their efforts are paying off, according to Milos Barutciski, a board member of Transparency International Canada.
Lax enforcement of Canada's anti-money laundering laws and regulations have helped make British Columbian property an attractive investment for criminals, according to Kenneth Marsh, a former investigator of organized crime for the Royal Canadian Mounted Police.
A Canadian proposal to regulate virtual currency firms as money services businesses but otherwise "tread lightly" with federal rules is a welcome approach, according to bank representatives and anti-money laundering consultants.