News
Canada Strengthens Anti-Money Laundering Regulations
By Matt Squire
printThe Canadian government issued new anti-money laundering (AML) and anti-terrorist financing regulations that require some financial institutions to adhere to more rigorous customer identification policies and verify the identities of beneficial owners of corporations. The new AML rules, published Wednesday, require certain enhanced customer due diligence standards, including identifying and monitoring correspondent banking relationships. The Canadian Department of Finance said the changes are designed to bring the country's AML regime in line with the international standards set forth by the Financial Action Task Force. The rules also call for the registration of money services businesses, the reporting of suspicious activity,...
TO READ THE FULL STORY
Related News
Canadian officials Monday previewed pending anti-money laundering rules for domestic officials and advised financial institutions to review customer accounts and prior transactions for links to world soccer's top governing body.
Canada's top financial intelligence agency intends to work more closely with its counterparts abroad and investigators at home to identify money launderers, according to Gérald Cossette, the group's new director.
Canadian compliance officers at banks and non-bank institutions are bracing themselves for broad changes to their anti-money laundering obligations ahead of the country's next evaluation by an international watchdog group.
The findings of a pending report by Canadian lawmakers will likely spur reforms of the nation's financial intelligence unit and new anti-money laundering rules for non-financial institutions, say sources.
Financial institutions in Canada will be required to strengthen their due diligence controls and report all cross-border transactions, under draft rules proposed by the country's Department of Finance Wednesday.
Proposed amendments to Canada's primary anti-money laundering law would require banks and other companies to apply new prescriptive compliance controls in place of the risk-based policies currently used, say industry experts.
The United States and Canada will soon begin sharing more data on seized currency in an effort to crackdown on terrorist financing and other crimes, the Department of Homeland Security said Tuesday.
Canada took its first step last month into fining financial institutions for anti-money laundering troubles, penalizing two money services business and prompting at least one of the companies to close.
In the world of financial compliance, Canada "talks a good game" but does little to enforce counter-terrorism financing and anti-money laundering regulations, according to Chris Mathers, a Toronto-based consultant.
Requirements that Canadian real estate developers better identify their customers and that casinos record and report large disbursements went into effect Monday. Among the requirements of the rules is the provision that home builders must obtain proof of a customer's identity.
Canada's financial intelligence unit, which has been criticized for failing to effectively enforce the nation's anti-money laundering laws, is being new granted powers to levy money penalties against offending institutions.
Canadian authorities charged a Sri Lankan-born man with raising funds for a terrorist organization, marking the first time Canada has charged an individual with the crime.
The Canadian government is broadening the scope of its anti-money laundering and anti-terrorist financing reporting requirements in the real estate and casino industries in a bid to bring the country's regime in line with international standards.
The Canadian government has published final rules extending the country's anti-money laundering and anti-terrorist financing laws to certain notaries, jewelers and the legal profession. The new rules also outline penalty guidelines for money laundering violations.